R1m hush money claim

In a statement yesterday, the Democratic Alliance (DA) in Limpopo alleged that an official had effectively been paid R1 million in what they describe as a hush payment over the hundreds of millions improperly invested in the now liquidated VBS Mutual Bank.

DA councillor Mashudu Mariba from the Vhembe district municipality has said his party will write to MEC for cooperative governance, Bioskop Makamu, to consider disciplinary action against all Vhembe district municipality officials who allegedly authorised a R1 million payment as a “golden handshake” to Reuben Rambado, the municipality’s former municipal manager.

It is unclear if the money has already been paid to Rambado, though the DA wants it reversed if it has.

Rambado has been accused of authorising a R300 million illegal investment into VBS, along with other officials.

“The DA can confirm that the municipality opted to pay Rambado as he was threatening to expose senior officials and politicians,” Mariba said.

Mariba alleged the R1 million payment was made to him, or was at the very least authorised, despite a letter that the Limpopo department of cooperative governance, human settlements and traditional affairs (COGHSTA) sent to the municipality, stating that they should not consider any settlements for officials implicated in the VBS debacle.

“It is clear that the ANC-led municipality has opted to disregard COGHSTA’s advice and utilised taxpayers’ money to shut Rambado’s mouth before exposing their friends and comrades who benefitted from the VBS saga,” Mariba said. The DA said they only became aware of the alleged settlement agreement on Monday.

The Vhembe municipality last year suspended Rambado and chief financial officer Nyiko Machava over the VBS scandal.

Municipal workers were demonstrating at the time to demand the recall of executive mayor Florence Radzilani, and the suspension of the member of the mayoral committee on finance, Rudzani Ludere, among others.

At the time, it was reported that Rambado was “threatening to spill the beans”. In 2004, it was reported that politicians in LMakhado municipality signed a secret R830 000 deal with Rambado, also for his silence.

The Citizen failed to receive comment from Rambado before today’s publication.

It is clear the ANC used taxpayers’ money to shut up Rambado.

Mashudu Mariba

DA councillor in Vhembe municipality