Three in court for 'illegal' investment in VBS of R150m in municipal funds

Two former officials of a Limpopo municipality and a commissioning agent for VBS Mutual Bank who allegedly invested R150m of municipal funds into the mutual bank — which was never repaid — appeared in the Lebowakgomo magistrate's court this week.

A director of STG Financial Solutions, Thapelo Molathlegi, 41, former Lepelle-Nkumpi municipal manager Thabo Ben Mothogoane, 38, and former CFO Rosina Mangaka Ngoveni, 46, are charged with contravening the Municipal Finance Management Act (MFMA) and corruption, said National Prosecuting Authority spokesperson Mashudu Malabi-Dzhangi on Wednesday.

She said between November and December 2017, the three allegedly authorised the unlawful investment into VBS. The MFMA does not allow municipalities to bank with a mutual bank.

“Molathlegi is out on R35,000 bail, Mothogoane is on R40,000 and Ngoveni on R15,000 after they were arrested by the Hawks on Monday.

“It is alleged that Molathlegi acted as an agent for VBS and received corrupt benefits of more than R2m. Mothogoane allegedly received a Mercedes-Benz worth more than R1m and cash amounting to R100,000.” 

The case was postponed to January 23 for disclosure of the case docket and for the accused to instruct their legal representatives.

In a separate statement, the Hawks said the arrest of the three brings to 32 the number of people who have been arrested in relation to the unlawful investment into VBS. The Hawks said three of the accused had already been convicted.

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