FORMER WEST RAND SENIOR OFFICIALS APPEAR IN CONNECTION WITH VBS CORRUPTION
29 JUNE 2021
Three former senior officials of the West Rand District Municipality appeared briefly at the Pretoria Specialised Commercial Crimes Court in connections with VBS corruption involving about R400m.
West Rand District Municipality's former Municipal Manager, Moroashike David Mokoena (60), former Chief Financial Officer (CFO), 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).
They were arrested yesterday morning, Monday 28 June, by members of the Hawks' Serious Corruption Investigation at several locations in Gauteng.
The appearance relates to VBS Mutual Bank (VBS) corruption investigation where municipalities made billions of corrupt deposits into the bank in contravention of the law and municipal finance regulations.
Mokoena caused the West Rand District Municipality to invest more than R347m 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 amongst others, 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 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 would be agreed upon at the next appearance.
Meanwhile, charges against former Merafong City Local Municipality chief financial officer, (CFO) Matthys Wienekus (64) were withdrawn when he briefly appeared before the Pretoria Specialised Commercial Crime Court this morning.
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 who appeared at the same court earlier today.
Issued by Sipho Ngwema, NPA National Spokesperson, 29 June 2021
