The Great Bank Heist - former mayor and municipal manager arrested in connection with VBS looting spree

27 Nov 2022

The rot runs deep in the VBS/Vele Investments saga. The latest suspects joining a long list of prominent people implicated are Minah Maredi (59), former municipal manager at the Elias Motsoaledi Municipality, and former Mayor Julia Mathebe (51).

According to a 2018 report titled The Great Bank Heist, R1.91-billion was stolen from VBS Bank. VBS operated as a criminal enterprise, according to Advocate Terry Motau and the Werksmans law firm.

The report, dated 10 October 2018, indicated there was a wide range of criminality in the conduct of the affairs of both VBS Bank and Vele Investments; that “VBS and Vele had operated as a single criminal enterprise.” Hence the report recommended that those identified as participating in and benefitting from this criminal enterprise be charged and prosecuted.

Read more in Daily Maverick: "R2bn looted from ‘corrupt & rotten’ VBS Bank, says report"

Fast-forward four years to 2022 and the latest suspects joining a long list of prominent people, political figures and individuals implicated in the VBS Bank Heist are Minah Maredi (59), former Municipal Manager at the Elias Motsoaledi Municipality, and former Mayor Julia Mathebe (51).

Maredi and Mathebe were arrested on 23 November and appeared on the same day in the Pretoria Specialised Commercial Crimes court on charges of corruption, money laundering and contravention of the Municipal Finance Management Act. They were released on R30,000 bail each.

Mathebe is also the current Executive Mayor of Sekhukhune District Municipality, elected on 9 February 2022, nearly two months after she was elected ANC Regional Chairperson in Sekhukhune.

Following Mathebe’s arrest, the ANC in Limpopo has stated that the mayor will step down from all party activities until her name is cleared.

Read more in Daily Maverick: "VBS bank heist arrests: Who’s next?"

A further seven men and one woman deemed to be instrumental in the three-year looting spree at VBS Bank were also arrested.

Maredi is accused of investing R190-million of municipal funds into the now defunct VBS Mutual Bank and is said to have received more than R300,000 in “gratification”.

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According to Hawks spokesperson Colonel Katlego Mogale, their arrest was as a result of an ongoing investigation into the VBS Mutual Bank Investments by municipalities, in contravention of the Municipal Finance Management Act (MFMA).

“The municipal manager is said to have been instrumental in investing R190-million of municipal funds into the VBS Mutual Bank. The Mayor is said to have received over R300,000 in gratification which included cash, accommodation and flight tickets. These were channelled through a company belonging to her children,” Mogale said.

Maredi is accused of participating in certain investments with VBS Bank during the fiscal years 2016/2017 and 2017/2018.

The municipality began investing with VBS on 9 December 2016, for the fiscal year 2016/2017, and R90-million was invested in three batches up to April 2017.

During the financial year 2017/2018, five separate investments were deposited up to 15 December 2018 – a total of R100-million. The capital amount invested plus interest came to more than R192-million, which was withdrawn on 27 February 2018, days prior to VBS Bank being placed under curatorship by the Minister of Finance.

Maredi was suspended in November 2018 for improperly investing and depositing over R192-million of municipal funds into the VBS Bank in violation of the MFMA’s guidelines and National Treasury warnings that municipalities should not invest municipal funds in mutual banks.

Maredi filed a labour court challenge, requesting that her suspension be declared unlawful and set aside so that she could resume her duties. The labour dispute was heard on 19 December 2018, and Labour Court Judge Edwin Tlhotlhalemaje denied the request on 28 December 2018:

“For the applicant to attempt to regard herself as some saviour because the respondent recovered its investments with interest is also cruel irony… the whole scheme and modus operandi of the VBS rot appears to have entailed robbing Peter to pay to Paul,” he said.

The Labour Court also determined there was a need for thorough investigations into how Maredi unlawfully made investments in VBS, and it should be allowed to conduct investigations, to get to the bottom of the matter.

The matter of Maredi and Mathebe has been postponed to 2 March 2023. DM

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