Former municipal official arrested in connection with the VBS scandal. File Picture: Antoine de Ras
Former Fetakgomo-Tubatse municipal manager, Johannes Mohlala, who illegally invested R230 million of public funds in the now-collapsed VBS Mutual Bank, was handed a suspended five-year prison sentence in the High Court in Pretoria.
Mohlala, 60, pleaded guilty to contravening the Municipal Finance Management Act (MFMA) and was ordered to pay R100,000 to the VBS curator.
The court suspended his prison term for five years on condition he does not commit a similar offence during this period.
“The investigation revealed that Fetakgomo-Tubatse Local Municipality invested an amount of R230 million which was paid in five trenches from November 15, 2016 to February 19, 2018,” Directorate for Priority Crime Investigation (known as the Hawks) spokesperson, Colonel Katlego Mogale said.
These investments were made in direct contravention of municipal finance regulations, which prohibit municipalities from investing in mutual banks.
The case took another turn when former chief financial officer Ratau, 42, failed to appear in court, prompting the judge to issue a warrant for his arrest.
The court will consider forfeiting Ratau's bail when the matter returns to court on November 18.
“The third accused, Keaobaka Remigious Kgatitsoe was sentenced to five years imprisonment which was wholly suspended for five years when he appeared in the Pretoria Specialised Commercial Crime Court on July 12, 2022, on the Fetakgomo Tubatse Local Municipality case relating to VBS investments,” said Mogale.
The three accused were initially arrested in Pretoria on November 16, 2021, following an extensive investigation into the municipality's illegal VBS investments.
“The three appeared in the Pretoria Specialised Commercial Crimes Court on Wednesday, the November 17, 2021,” said Mogale.
They faced charges including contravention of the Municipal Finance Management Act, corruption, and money laundering.
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