By Thabo Monyela.
LIMPOPO- Sekhukhune District executive mayor and former municipal manager of Elias Motsoaledi were arrested by the HAWKS on Wednesday, November 23 in Groblersdal in connection with the wrongful investment in the now defunct VBS mutual bank.
The pair subsequently appeared in the Pretoria Specialized Commercial Crimes Court on the same day, facing charges of corruption, money laundering and contravention of the Municipal Finance Management Act as well as the Banks act.
Sekhukhune district executive mayor Julia Mathebe, during her tenure as the mayor of Elias Motsoaledi Local Municipality allowed her municipality to invest an amount of R190 million in the VBS Mutual banks and the municipality later withdrew the funds upon the advice of the Treasury before the bank was liquidated. By the time of the funds recall, the Municipality lost R45 000 supposed interest.
The ‘untouchable’ Maredi was initially cleared by Limpopo Government and was allowed to stand as the executive mayor of the Sekhukhune District.
The former Elias Motsoaledi municipal manager, Minah Maredi later on took the blame for the unlawful investment and she subsequently resigned and was allegedly paid a settlement of R1.8 million by the municipality.
According to the Hawks spokesperson colonel Katlego Mogale, Maredi is said to have been instrumental in investing the R190 million municipal funds into the VBS Mutual Bank wherein the mayor received over R300 000 in gratification which included cash, accommodation and flight tickets.
” The R300 000 gratifications was channelled through a company belonging to the executive mayor’s children” colonel Mogale said.
The Bolsheviks Party, said they are delighted and welcomes the arrest made by the Hawks to the former Elias Motsoaledi municipal stakeholders.
” We believe that the former MM was paid out for her silence when she received a golden handshake running into over R2 million as part of her settlement, we hope she will spill the beans and tell the whole truth to the Hawks” the party’s secretary said
