Johannesburg,South Africa

Three masterminds who were involved on stealing R150 million of the Lepelle-Nkumpi Local Municipality through illegitimate investment to VBS Mutual Bank appeared in court.

According to Hawks,the Hawks Serious Corruption Investigation team executed warrants of arrest against three accused on VBS corruption saga.Thabo Ben Mothigoane(38),Rosihah Mangaka Ngoveni(46) and Thapelo Molatlheng(41) appeared before Lebowakgomo Magistrates' Court on 30 October 2023 on allegations that they were all involved in investing R150 million of the Lepelle-Nkumpi Local Municipality in VBS Mutual Bank.

The statement said the investigation revealed that the trio invested an amount of R150 million with VBS Mutual Bank on 30 November 2017.The Municipality was prohibited from placing any deposits,inclusive of any investment deposits with VBS according to the Municipal Finance Management Act,2003(Act No. 56 of 2003).

It is evident that the municipal workers who invested that amount to the now-defunct bank was only doing that to enrich themselves not the communities of that municipality.

The statement added that it is further alleged that Mothigoane who was the municipal manager at Lepelle-Nkumpi local municipality invested the R150 million with VBS and he received R100.000 as gratification and furthermore Molatlheng paid an amount of R1 180 000.00 from his company account(STG Financial Solutions (Pty)Ltd to Mercedes-Benz Bedford View for the purchase of a Mercedes-Benz V250d Avantgarde motor vehicle for the benefit of Mothogoane.

The statement explained further,Molatlheng owner of STG Financial Solutions(Pty)Ltd acted as an intermediary between the Municipality and VBS Mutual Bank.He accepted an amount of R2 246 575.34 from the VBS officials by influencing them to act in a manner that amounts to the illegal,dishonest,unauthorised,incomplete,or biased exercise,carrying out or performance of any powers,duties or functions arising out of a statutory,contractual or any other legal obligation,to the solicitation of R150 million deposit into VBS.

The statement concluded that the accused were all released on bail,Mothogoane was granted bail of R40 000,Molatlhegi R35 000 and Ngoveni R15 000.The matter was postponed to 23 January 2024 for disclosure.This brings the number of accused in the VBS who already been arrested and brought before various courts to 32 with three accused already convicted.

The VBS Mutual Bank was placed into final liquidation by the North Gauteng High Court on 13 November 2018 and Mr Anoosh Rooplal was appointed as liquidator by the Master of the High Court.