By Kaya 959 Reporter
The Hawks have arrested three more people as part of ongoing investigations into the VBS Bank scandal.
Hawks spokesperson Brigadier Nomthandazo Mbambo says officers arrested the trio on Tuesday morning.
A 57-year-old former Fetakgomo-Greater Tubatse Municipality manager is among those arrested.
Officials have also taken in a 39-year-old former Chief Financial Officer and a 41-year-old private business owner.
Officers arrested all three at their residences around Pretoria.
According to Mbambo, the allegations in this matter were reported and opened for the contravention of the Municipal Finance Management Act, 2003 (Act No. 56 of 2003) for investing municipal funds with VBS Mutual Bank.
Municipality invested R230 million
She says thus far, investigations have revealed that Fetakgomo-Greater Tubatse Local Municipality invested an amount of R230 million.
The municipality paid the money in five instalments from 15 November 2016 to 19 February 2018.
“The whole amount invested was never paid back to the municipality,” Mbambo says.
The three suspects will appear at Pretoria Specialised Commercial Crimes Court on Wednesday, 17 November.
They face charges of corruption and money laundering.
The VBS Bank saga came to light in 2018 after it was declared insolvent and bankrupt. VBS Bank was placed under curatorship.
The VBS Bank was formed in 1982. It had around 30 000 depositors with a deposit total of around R800 million. VBS Bank had a largely Limpopo-based client list.
In 2016, BusinessTech reported that former President Jacob Zuma had secured a R7.8m home loan to pay for non-security upgrades at his Nkandla home.
Daily Maverick previously reported that Tshifhiwa Matodzi has been named as the kingpin behind the scandal.
He is alleged to have ordered and orchestrated the flow of more than R325-million in VBS money to companies and people associated with him