Court hears municipality invested R140m in VBS despite warning

The trial against three accused in the VBS Mutual Bank corruption scandal has been adjourned until Thursday in the Polokwane Specialised Commercial Crimes Court in Limpopo.

Former Giyani Municipal Manager Risimati Maluleke, former Acting Chief Financial Officer Nnditshedzeni Mashau and businessman Zwivhuya Tshishonga are accused of facilitating the investment of more than R140 million from the Giyani Municipality into the now-defunct VBS Mutual Bank.

Previously, the court heard that the municipality failed to recover the money before the bank collapsed.

The state’s key witness told the Polokwane Specialised Commercial Crimes Court that the accused made the investment in the now-defunct VBS Mutual Bank despite a notice from the Treasury department not to do so.

The department warned the municipalities against investing public funds into the building society or non-mainstream banks.

A witness, who cannot be identified, detailed how municipal funds were deposited into the VBS Mutual Bank.

According to the witness, VBS received R100 million from Giyani Municipality and later another R40 million was invested.

The witness also told the court that some companies, including the one owned by the businessman, paid bribes to senior municipal officials so they would invest in the VBS.

He earlier testified that some officials were bought houses, while others received vehicles.

However, he refused to mention the names of the people who were involved in the investments, citing safety concerns.

He is expected to continue with cross-examination when the trial resumes. – By Avhapfani Munyai