Former West Rand officials granted R50K bail as more ‘VBS looters’ appear in court
Three former senior officials of the West Rand District Municipality were granted R50 000 bail each on Tuesday morning after a brief appearance at the Pretoria Specialised Commercial Crimes Court in connection with the VBS corruption scandal.
West Rand District Municipality’s former municipal manager Moroashike Mokoena (60), former CFO Romeo Mohaudi (33), and former Income and Expenditure Manager Mzwandile Reginald Mkhize (36), collectively face 20 counts of corruption and two counts of contravening the Municipalities Financial Management Act.
The trio was arrested by the Hawks in Gauteng on Monday.
The matter relates to the defunct VBS Mutual Bank where municipalities allegedly made billions from corrupt deposits into the bank.
Mokoena is accused of convincing the West Rand District Municipality to invest close to R350 million with mutual bank - deviating investment policies.
Mohaudi is allegedly responsible for a R50 million investment.
“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,” said national spokesperson for the National Prosecuting Authority Sipho Ngwema.
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In terms of the regulations, each municipality must adopt an investment policy which sets out amongst others, the procedure for the invitation and selection of competitive bids.
“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,” Ngwema added.
“The West Rand Municipality was therefore prohibited from placing any deposits, inclusive of any investment deposits, with VBS.”
The court postponed the matter to 22 October 2021 for a pre-trial hearing.
“The states hopes that a trial date would be agreed up on the next appearance.”
Meanwhile, charges against former Merafong City Local Municipality CFO, 64-year-old Matthys Wienekus, were withdrawn when he briefly appeared before the Pretoria Specialised Commercial Crime Court on Tuesday morning.
Wienekus was also arrested by the Hawks and charged with contravening the Municipal Finance Management Act for his role in depositing R50 million into the 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.
