Hawks arrest three more suspects over VBS Bank scandal

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The Hawks have arrested three more suspects in connection with the looting and collapse of VBS Mutual Bank.

The suspects – a 57-year-old former municipal manager and a 39-year-old former chief financial officer (CFO) from Fetakgomo Tubatse Local Municipality in Limpopo – were arrested on Tuesday morning at their residences around Tshwane.

They were arrested along with a 41-year-old owner of a private business.

Hawks spokesperson Brigadier Nomthandazo Mbambo said the suspects were nabbed following investigations into the VBS matter.

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They allegedly contravened the Municipal Finance Management Act (MFMA) by investing municipal funds with VBS Mutual Bank.

“The investigation revealed that Fetakgomo-Greater Tubatse Local Municipality invested an amount of R230 million which was paid in five trenches [sic] from 15 November 2016 to 19 February 2018.

“The whole amount invested was never paid back to the municipality,” Mbambo said in a statement.

The three were expected to appear at Pretoria Specialised Commercial Crimes Court on Wednesday on charges of corruption, money laundering and contravention of section 173 of the MFMA.

The total number of arrests related to the VBS case now stood at 23 suspects.

Compiled by Thapelo Lekabe

Source: citizen