The former employee at the Mahikeng Local Municipality, which illegally invested R92 million of taxpayer’s money, is said to have received bribes to the tune of R1.7 million. OFM News previously reported that Premier Job Mokgoro said cases linked to the VBS Mutual Bank were being investigated by the Hawks in the province and some of the accounting officers, including municipal managers (MM) in Mahikeng and other municipalities, were sacked. Hawks national spokesperson, Katlego Mogale, tells OFM News that the suspect, who was nabbed in Klerksdorp on Tuesday, allegedly received gratification in the form of credit facilities to purchase vehicles and property. 

Meanwhile, Mahikeng is one of the municipalities which came under scrutiny on Tuesday at a provincial webinar by MEC for Finance, Motlalepula Rosho, for using millions for consultants.

Mogale would not say if more arrests are imminent. The alleged investment of R92 million by the municipality into VBS Mutual Bank was in contravention of the Municipal Finance Management Act (MFMA). The suspect allegedly received gratification in the form of credit facilities for purchases of two high-powered vehicles and property in Klerksdorp amounting to over R1.7 million between 2017 and 2018.

“Mahikeng is one of the 20 municipalities that had invested municipal funds into VBS Mutual Bank. Of the R92 million, only R7 million was paid back to the Mahikeng Municipality and R85 million was never paid back. The suspect is expected to appear in the Mahikeng Regional Court on Wednesday, 11 August 2021, facing charges of contravention of the Municipal Finance Management Act and the Prevention and combatting of Corrupt Activities Act,” Mogale adds.

This arrest comes a year and few months after Mokgoro in February last year, during the state of the province address (SOPA), revealed that the disciplinary processes were concluded at the Mahikeng Local Municipality and the Hawks’ investigations were ongoing.

Four municipalities, including Moretele, Mahikeng, Madibeng, and Dr Ruth Segomotsi Mompati illegally invested R314 million of taxpayers’ money.

More than R2 billion was stolen from VBS, allegedly by its former chairperson, other board members, and outside companies.

At least eight other people have been arrested in connection with the heist.

OFM News