BusinessMayor, former municipal manager granted bail in VBS case

Mayor, former municipal manager granted bail in VBS case

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Former Elias Motsoaledi Native Municipality mayor and municipal supervisor, Julia Mathebe and Minah Maredi, have been granted bail on Wednesday following their arrests and subsequent court docket look referring to a R190 million deal linked to corruption-ridden VBS Mutual Financial institution.

Each Mathebe and Maredi have been granted bail of R30 000 every and their case was postponed to 2 March 2023.

Learn: VBS-accused fails to have banking legislation put aside, court docket orders his sequestration

Elias Motsoaledi Native Municipality, a part of the Sekhukhune District Municipality in Limpopo, invested R190 million in VBS Mutual Financial institution in 2014.

On Wednesday, Mathebe – who’s now mayor of the Sekhukhune District Municipality – appeared within the Pretoria Specialised Business Crimes Courtroom, alongside Maredi.

The pair have been arrested in Groblersdal earlier within the day and, in line with Colonel Katlego Mogale of the Hawks, face costs of corruption, cash laundering and contraventions of the Municipal Finance Administration Act and the Banks Act.

The arrests are the results of an ongoing probe into municipal investments made into the now defunct financial institution, which was declared bancrupt in 2018 and subsequently positioned beneath curatorship.

In line with South Africa’s municipal funding rules, municipalities are prohibited from endeavor investments with mutual banks.

The rules solely permit municipalities to speculate funds in funding type-deposits with industrial banks. However, the previous Elias Motsoaledi municipal officers invested R190 million value of municipal funds into VBS.

In costs laid by the state, it’s alleged that Maredi (as municipal supervisor on the time) performed an instrumental position within the deal, with former mayor Mathebe receiving greater than R300 000 in money, lodging and airfares, all of which have been channelled by means of an organization owned by her kids.

Learn:
Suspects accused of big VBS theft seem in court docket [Jun 2020]
VBS Financial institution liquidators take a scalp within the type of Firmanox [Dec 2020]
How VBS looted municipalities [Aug 2019]

In line with The Nice Financial institution Heist, Advocate Terry Motau’s report back to the Prudential Authority confirmed that VBS acquired over R3.4 billion from municipalities over the interval between January 2015 to 2018, when the financial institution was positioned beneath curatorship.

The financial institution, in flip, made funds to municipalities of simply over R2.3 billion, the report discovered.

The most recent arrests on Wednesday additionally come weeks after the Pretoria Excessive Courtroom dismissed VBS accused and political fixer Kabelo Matsepe’s plea to have the banking rules declared illegal.

Earlier this yr, Matsepe challenged the validity of the municipal funding rules, which limit municipalities from investing in mutual banks.

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