Written by
Wendy Dondolo
Multimedia Intern Journalist
Former Fetakgomo-Tubatse municipal manager, Johannes Mohlala, has been sentenced to a suspended five-year prison term after admitting to illegally investing R230 million of public funds in the now-collapsed VBS Mutual Bank.
Mohlala, 60, pleaded guilty to contravening the Municipal Finance Management Act (MFMA) and was ordered to pay R100,000 to the VBS curator. His sentence was suspended for five years, conditional on not committing similar offenses during this period.
The illegal investments were made between November 2016 and February 2018, with payments made in five tranches, and were in direct violation of municipal finance regulations, which prohibit municipalities from investing in mutual banks. According to the Directorate for Priority Crime Investigation (Hawks), the funds were channeled into VBS Mutual Bank despite clear regulations prohibiting such investments.
The case also involved two other individuals. Former chief financial officer Ratau (42) failed to appear in court, prompting a warrant for his arrest. Another accused, Keaobaka Remigious Kgatitsoe, was sentenced in July 2022 to a five-year suspended sentence for his role in the same case.
The three individuals were initially arrested in November 2021 following an extensive investigation into illegal investments in VBS Bank, which has been a significant corruption scandal in South Africa.