In the ongoing fight against corruption and maladministration, the Hawks’ Serious Corruption Investigation team has arrested a 59-year-old suspect in Klerksdorp today.
The suspect is reported to have taken part in the looting of VBS Mutual Bank through investing in the Mahikeng Local Municipality funds. Investigation revealed that R92 million of the taxpayers was invested into VBS in contravention of the Municipal Finance Management Act. The suspect alleged to have 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. Of the R92 million, only R7 million was paid back to the Mahikeng municipality and R85 million was never paid back.
The National Head of the Directorate for Priority Crime Investigation praised the team for a job well done. “As indicated previously, all those who participated in that illegal scheme which resulted in the loss of taxpayers’ monies into VBS matters will be held to account,” Lieutenant General Lebeya reiterated.
The suspect is expected to appear in the Mahikeng Regional Court tomorrow, 11 August 2021 facing charges of contravention of the Municipal Finance Management Act and the Prevention and combatting of Corrupt Activities Act.