Johannes Mohlala, the former municipal manager of Fetakgomo-Tubatse local municipality, was sentenced yesterday, November 6, 2024, by the Pretoria High Court for his involvement in the VBS Mutual Bank scandal.
In a statement by the Hawks on Thursday it revealed that Mohlala (60) received a five-year prison sentence, which was suspended for five years on the condition that he does not commit a similar offence during this period. Additionally, Mohlala has been ordered to pay R100 000 to the Curator of VBS.
Mohlala, who pleaded guilty under Section 105A of the Criminal Procedure Act, was convicted for contravening Section 173(1) of the Municipal Finance Management Act (MFMA). His sentencing comes as part of a broader investigation into the mismanagement of municipal funds through VBS Bank.
The court heard that between November 2016 and February 2018, Fetakgomo-Tubatse Local Municipality invested a substantial sum of R230 million into VBS, in contravention of the MFMA. The funds were paid in five tranches.
Mohlala's conviction comes alongside that of two other accused individuals, although one remains a fugitive.
Accused 2, Mr Ratau (42), a former chief financial officer for Fetakgomo-Tubatse Municipality, failed to appear in court. A warrant for his arrest has been issued, and the case has been postponed to November 18, 2024 for further proceedings, including the forfeiture of MRatau's bail.
Keaobaka Remigious Kgatitsoe (44), a businessman involved in the scheme, was also arrested in November 2021. Kgatitsoe was previously sentenced in July 2022 to five years imprisonment, wholly suspended for five years, following his guilty plea in relation to the VBS investments.
The case stems from a series of arrests on November 16, 2021, when Mohlala, Ratau and Kgatitsoe were charged with contravening the MFMA, corruption, and money laundering in connection with their actions concerning the VBS Mutual Bank scandal.
The investigation revealed that the Fetakgomo-Tubatse Local Municipality was one of several municipalities that unlawfully invested public funds with VBS, a practice that ultimately led to the collapse of the bank and the loss of millions of taxpayer rands.
This sentencing marks another step in the ongoing effort to hold individuals accountable for the misappropriation of municipal funds in the VBS case, which has been one of South Africa's largest public finance scandals in recent years.
For now, Mohlala's sentence stands, but further developments are expected as the case progresses with the outstanding charges against Ratau.
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