VBS: more arrests loom as Hawks, NPA seek case postponement

THE National Prosecuting Authority ( NPA) and the Hawks are widening their net to link more people who allegedly benefited from the theft of R2 billion from the Venda Building Society ( VBS) Mutual Bank.

Yesterday, the NPA asked the Palm Ridge Commercial Crime Court for a three- month postponement to allow law enforcement agencies to arrest every suspect linked to the crime.

The request was made during the brief appearance of former VBS board chairperson Tshifhiwa Matodzi, who appeared alongside the bank’s former chief executive, Andile Ramavhunga, former treasurer Phophi Mukhodobwane, KPMG auditor Sipho Malaba, non- executive director Lieutenant- General Avhsahoni Ramikosi, and Ernest Nesane and Paul Magula – who both represented the Public Investment Corporation on the VBS board, as non- executive directors.

The seven were not asked to plead to the charges against them.

When they first appeared on June 18, they were each charged with 47 counts including fraud, corruption, tax evasion and money laundering.

Addressing the court yesterday, prosecutor Hein van der Merwe said the prosecution was looking at making more arrests.

According to Van der Merwe, the legal representatives of the accused would be provided with the necessary additional information before their clients’ next court appearance.

NPA spokesperson Sipho Ngwema would not reveal who their targets were.

Speculations is, however, rife that politicians and municipal managers, as well as chief financial officers of several municipalities who invested municipal funds in VBS, were next in line. The group includes officials from Gauteng and North West after the provincial governments separately commissioned forensic reports into their municipalities’ investments into VBS.

The findings corroborated those of a report commissioned by the South African Reserve Bank led by advocate Terry Motau SC, in which he lists a number of people who allegedly invested large amounts of money in the scheme.

Van der Merwe would also not reveal the identities of suspects likely to be arrested before the seven return to court.

Insiders told Independent Media that the admission of guilt by former VBS chief financial officer Phillip Truter had fortified law enforcement agencies to act swiftly to prosecute all those who benefited from the fraud.

Truter admitted on Wednesday to being part of a group involved in the theft of VBS funds – funds which were invested by pensioners and several municipalities.

He pleaded guilty to five counts of racketeering, two of fraud, one of corruption, one of money laundering and one of tax evasion, admitting that he was paid R2m and had not disclosed that income to the SA Revenue Service.

He was sentenced to 10 years in jail, of which three years were suspended for five years.

In another development, Thys Wienekus – who acted as chief financial officer of Merafong Local Municipality in Carletonville, Gauteng for three days – is expected to enter into a similar settlement with the NPA in December.

The deal was expected to be settled last month, but it is understood that Wienekus wants a non- custodial sentence in exchange for testifying against a suspect who allegedly coerced him to invest R50m with the VBS.