A 59-year-old former Municipal Manager of Elias Motsoaledi Municipality and former mayor of Elias Motsoaledi who is now the current Mayor of the Sekhukhune District Municipality are appearing in the Pretoria Specialised Commercial Crimes Court, subsequent to their arrest this morning in Groblersdal, Limpopo.
The arrest was as a result of an ongoing investigation into the VBS Mutual Bank investments that were conducted by municipalities in contravention of the Municipal Finance Management Act.
The municipal manager is said to have been instrumental in investing R190 million municipal funds into the VBS Mutual Bank wherein the mayor received over R300 000-00 in gratification which included cash, accommodation and flight tickets.
These were channeled through a company belonging to her children.
The two suspects are appearing in the Pretoria Specialised Commercial Crimes Court on charges corruption, money laundering and contravention of the Municipal Finance Management Act as well as the Banks Act.
