Three former senior West Rand District Municipality officials, arrested for allegedly irregularly depositing R400 million into the collapsed VBS Mutual Bank, have been released on R50 000 bail.
The trio appeared briefly in the Pretoria Specialised Commercial Crimes Court on Tuesday. They were on Monday arrested by members of the Hawks’ Serious Corruption Investigation at several locations in Gauteng.
The three, the former Municipal Manager Moroashike David Mokoena, 60, former Chief Financial Officer Romeo Mohaudi, 33, and former Manager: Income and Expenditure Mzwandile Reginald Mkhize, 36, collectively face 20 counts of corruption and two of contravening the Municipalities Financial Management Act (MFMA).
The deposits into the bank were in contravention of the law and municipal finance regulations.
In a statement, the National Prosecuting Authority said Mokoena caused the West Rand District Municipality to invest more than R347 million with VBS, and the various investment policies of the West Rand Municipality from time to time, in contravention of the MFMA.
“Mohaudi caused R50 million to be invested with VBS in contravention of the MFMA and the investment policy adopted by the Merafong Municipality.
“In order to facilitate the investments, the three received corrupt gratifications from VBS officials in the form of motor vehicle finance facilities, mortgage bond facilities and several payments.”
In terms of the regulations, each municipality must adopt an investment policy which sets out, among other things, the procedure for the invitation and selection of competitive bids or offers in accordance with the supply chain management (SCM) process in terms of the SCM regulations supported by municipal policy.
“The West Rand Municipality adopted a ‘Banking and Investment Policy’ which restricts the municipality when placing deposits with banks. It prescribed that such deposits be placed with banks registered in terms of the Banks Act. The VBS was not registered under this Act.
“The West Rand Municipality was therefore prohibited from placing any deposits, inclusive of any investment deposits, with VBS,” the NPA said.
The accused were released on R50 000 bail and the matter was postponed to 22 October 2021 for pre-trial management. The state hopes that a trial date will be agreed upon at the next appearance.
Meanwhile, charges against former Merafong City Local Municipality CFO Matthys Wienekus, 64, were withdrawn when he briefly appeared before the same court on Tuesday.
Wienekus was arrested by the Hawks and charged with contravening the MFMA for his role in depositing R50 million with VBS Mutual Bank against the prescripts of the MFMA and the municipality’s investment policy.
He is among 64 witnesses that are scheduled to testify against the three former West Rand District Municipality officials.
Source: South African Government News Agency