The corruption case of two former officials of the Greater Giyani local municipality and a businessman charged with unlawful investment of municipal funds in VBS Mutual Bank was postponed until July 4.
Former municipal manager Risimati Hitler Maluleke, 64, acting CFO Nditshedzeni Mashau, 41, and Zwivhuya Goodness Tshishonga, 33, appeared briefly in the Polokwane specialised commercial crimes court on Monday. The postponement is to allow legal representation to be arranged for one of the accused.
They are charged with contravening the Municipal Finance Management Act (MFMA), corruption and money laundering. They are out on bail ranging from R20,000 to R25,000.
They were arrested by the Hawks on March 5 for their alleged role in the approval of an unlawful investment in VBS Mutual Bank. The MFMA does not allow municipalities to bank with a mutual bank and VBS was not a bank as defined in the Banks Act.
“It is alleged that the first investment of R100m matured and yielded an interest amounting to over R4m,” National Prosecuting Authority spokesperson Mashudu Malabi-Dzhangi said.
She said more than R48m was subsequently invested. The investment and the interest were then not paid back to the municipality.
It is alleged Tshishonga received substantial amounts of money in his Real Consulting business account. Tshishonga would then allegedly transfer a portion of the money to Maluleke.
TimesLIVE
Three in court for 'illegally' investing municipal funds in VBS Mutual Bank
Image: NPA Communications
The corruption case of two former officials of the Greater Giyani local municipality and a businessman charged with unlawful investment of municipal funds in VBS Mutual Bank was postponed until July 4.
Former municipal manager Risimati Hitler Maluleke, 64, acting CFO Nditshedzeni Mashau, 41, and Zwivhuya Goodness Tshishonga, 33, appeared briefly in the Polokwane specialised commercial crimes court on Monday. The postponement is to allow legal representation to be arranged for one of the accused.
They are charged with contravening the Municipal Finance Management Act (MFMA), corruption and money laundering. They are out on bail ranging from R20,000 to R25,000.
They were arrested by the Hawks on March 5 for their alleged role in the approval of an unlawful investment in VBS Mutual Bank. The MFMA does not allow municipalities to bank with a mutual bank and VBS was not a bank as defined in the Banks Act.
“It is alleged that the first investment of R100m matured and yielded an interest amounting to over R4m,” National Prosecuting Authority spokesperson Mashudu Malabi-Dzhangi said.
She said more than R48m was subsequently invested. The investment and the interest were then not paid back to the municipality.
It is alleged Tshishonga received substantial amounts of money in his Real Consulting business account. Tshishonga would then allegedly transfer a portion of the money to Maluleke.
TimesLIVE
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