Ex-mayor, municipal manager arrested for R190m VBS corruption

The Hawks have arrested a former municipal manager and former mayor of Elias Motsoaledi municipality in Limpopo in connection with corruption and money laundering relating to a R190m investment council made to VBS Mutual Bank.

Hawks police spokesperson Katlego Mogale said the pair were arrested on Wednesday morning in Groblersdal as part of the ongoing investigation into the VBS Mutual Bank investments made by municipalities in contravention of the Municipal Finance Management Act.

“The municipal manager is said to have been instrumental in investing R190m of municipal funds into the VBS Mutual Bank wherein the mayor received over R300,000 in gratification which included cash, accommodation and flight tickets,” Mogale said.

“These were channelled through a company belonging to her children.”

The two suspects are appearing on Wednesday in the Pretoria Specialised Commercial Crimes Court on charges of corruption, money laundering and contravention of the Municipal Finance Management Act as well as the Banks Act.