Giyani municipal CFO fired over suspected involvement in VBS saga

This follows last week's revelations of large-scale looting to the tune of R1.8-billion at VBS Mutual Bank in a report titled "The Great Bank Heist".

This follows last week's revelations of large-scale looting to the tune of R1.8-billion at VBS Mutual Bank in a report titled "The Great Bank Heist".

The Giyani municipality on Sunday confirmed that its chief financial officer has been fired following his alleged involvement in the VBS Mutual Bank debacle.

“The municipal council dismissed the CFO, Hitler Maluleke during a special council sitting on Friday, 19 October,” said municipal spokesperson Steven Mabunda.

“Part of the reason [for his dismissal] is that he was directly involved in the infamous VBS investment scandal and he is also accused of having authorised [payment] for some projects that were not done.”

Mabunda said Maluleke’s involvement came to light when a full-time municipal manager was hired in January this year.

“In the course of his duties, he uncovered some suspicious transactions.”

An independent forensic investigation followed and a report was compiled.

Disciplinary hearings

The report recommended that the CFO, as well as the director of technical services, be put on precautionary suspension.

On the eve of the disciplinary hearings, the director of technical services, Precious Mathebula, resigned.

Maluleke’s firing is the outcome of his disciplinary hearings.

A criminal case was also opened against the two with the Hawks in Polokwane in August.

Mabunda said that the municipality remained unsure as to what would happen with the approximately R160-million the local authority had invested with VBS bank.

“It might not come back… We are working around the clock to try and survive with what we have now.”

This follows last week’s revelations of large-scale looting to the tune of R1.8-billion at VBS Mutual Bank in a report titled “The Great Bank Heist”, compiled by Advocate Terry Motau and Werksmans Attorneys.

Earlier this month, a final investigation report into allegations of corruption at the bank was released. It revealed large-sale looting of approximately R1.8-billion at the bank.

In the report, Motau, appointed by the Reserve Bank, recommended that more than 50 individuals be criminally charged and held liable in civil proceedings, including VBS directors, as well as politicians, municipal officials, their relatives and auditors who signed off on the bank’s “fraudulent” financial statements. — News24

READ MORE: New report backs criminal charges against VBS ‘captors’

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