Court hears municipality invested R140m in VBS despite warning

The trial against three individuals in the VBS Mutual Bank corruption case has been postponed until Thursday at the Polokwane Specialised Commercial Crimes Court. Accused Risimati Maluleke, Nnditshedzeni Mashau, and Zwivhuya Tshishonga are alleged to have invested over R140 million from Giyani Municipality into the now-bankrupt VBS Mutual Bank.

The municipal authority was unable to recover their funds prior to the bank's collapse. The prosecution's main witness testified that the defendants disregarded a warning from the Treasury department not to invest public funds into VBS or non-mainstream banks. The witness also explained how Giyani Municipality transferred R100 million and another R40 million into VBS.

Furthermore, the witness revealed that certain companies, including Tshishonga's, paid bribes to high-ranking municipal officials to facilitate the investments. These officials allegedly benefited from houses and vehicles as rewards. However, the witness declined to disclose names for safety reasons and may continue with cross-examination when the trial resumes.