News24 reports that Charlotte Ngobeni, a Collins Chabane municipal manager, appeared briefly in the Specialised Commercial Crimes Court sitting in the Palm Ridge Magistrate's Court on Friday, on charges of corruption and contravention of the Municipal Financial Management Act.
She was granted R50,000 bail and is expected back in court on 6 May. Ngobeni is the second municipal official to be arrested in connection with the VBS Mutual Bank saga. She is accused of depositing a sum of R120 million – funds that belonged to the municipality – into an interest-bearing fixed deposit account at VBS Bank for a period of three months. "In turn, she received gratification from people accused of being part of a racketeering enterprise whose aim was to swindle VBS Mutual Bank," National Prosecuting Authority spokesperson Sipho Ngwema indicated. In May 2017, the municipality had approved and adopted an "Investment and Cash Management Policy" that came into effect on 2 June 2017, he advised. The policy prohibited the municipality from placing deposits with banks registered in terms of the Banks Act. The municipality was, therefore, not allowed to invest with VBS because it was not registered under the Banks Act. On 28 October 2017 to 30 October 2017, Ngobeni received R51,196 for accommodation, meals, beverages, spa treatments and spa products purchased at the Fairlawns Boutique Hotel and Spa in Morningside in relation to the VBS deposit, Ngwema alleged. Around 30 January 2018, Ngobeni allegedly also received a Tag Heuer ladies wristwatch worth R28,500. VBS failed to repay the deposit of R120m together with accumulated interest thereon to the municipality.
- Read the full original of the report in the above regard by Jeanette Chabalala at News24
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