Thulamela municipality corruption case postponed to allow for representations

The Thulamela municipality corruption and maladministration case, in connection with millions deposited in VBS Mutual Bank, was on Wednesday postponed until September 30.

This is to allow for lawyers for municipal manager of Thulamela local municipality Hlengani Maluleke, 52, and former mayor Avhashoni Stephen Tshifhango, 49, to make representations before the director of public prosecutions.

The two men appeared briefly before the Polokwane specialised commercial crimes court.

Tshifhango is facing a charge of corruption and Maluleke is facing a charge of contravening the Municipal Finance Management Act (MFMA).

The two were arrested in February on allegations of corruption and maladministration.

“The former mayor, allegedly received a Jeep Cherokee 3.6L VVT Overland, valued at over R600,000, from the director of VBS as a gratification for the Thulamela investment made by the municipality, and the municipal manager invested R30m of municipality money into VBS, in contravention of the MFMA,” National Prosecuting Authority spokesperson Mashudu Malabi-Dzhangi said.

She said at least 20 municipalities in Limpopo, North West, and Gauteng lost nearly R1.6bn after illegally investing with the bank.

The MFMA does not allow municipalities to bank with a mutual bank, but allows it to do so with a fully registered bank.

“The matter is postponed to September 30, for the defence to bring the application of representations for both accused,” Malabi-Dzhangi said.

TimesLIVE