Former Elias Motsoaledi Municipality mayor, Julia Mathebe and municipal manager, Minah Maredi have been arrested for their alleged role in the illegal investment of public funds in the now liquidated VBS Mutual Bank.

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Former Elias Motsoaledi Municipality mayor, Julia Mathebe and municipal manager, Minah Maredi have been arrested for their alleged role in the illegal investment of public funds in the now liquidated VBS Mutual Bank.

They are appeared at the Pretoria Special Crime Court this afternoon.  The municipality invested R190 million in VBS between 2014 and 2016.

The investments were against the Municipal Finance Management Act.  The Hawks says Mathebe allegedly received over R300 000 in gratification which included cash.

Former municipal manager, Minah Maredi’s contract was terminated and Maredi was given a golden hand shake of R1.8 million.

Hawk’s spokesperson, Katlego Mogale says, “The municipal manager is said to have been instrumental in investing R190 million municipal funds into the VBS Mutual Bank wherein the mayor received over R300 000 in gratifications which included cash, accommodation and flight tickets. These were channelled through a company belonging to her children. The two suspects are appearing in the Pretoria Specialised Commercial Crimes Court this afternoon on charges corruption, money laundering and contravention of the Municipal Finance Management Act as well as the Banks Act.”

The post Hawks arrest municipal officials for illegal investment at VBS Mutual Bank appeared first on SABC News – Breaking news, special reports, world, business, sport coverage of all South African current events. Africa’s news leader..