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The wave of high-profile arrests of the Hawks will continue into the weekend with the focus shifting to the looting of VBS Mutual Bank. Two sources with intimate knowledge said that arrest warrants have already been signed against several ANC politicians believed to have influenced the warehouses and that arrests are imminent.
The names of Limpopo politicians are known for Mail and tutor.
The head of the Hawks, officially known as the priority crimes investigation directorate, General Godfrey Lebeya, would only tell the M&G his officers had been preparing to make arrests before.
“[On Tuesday] We should have had some court appearances, but there are other things that need to be done. Remember that we are not working alone in this space, and especially [since] We stand behind when it comes to prosecution. But everything is packed now, ”he said.
Lebeya said he was confident that by Oct. 7, when the five people who were arrested earlier this year return to court, they will likely be joined by other people in the dock.
“There is a thought that they should not appear alone… We also want to go to the municipalities… We are prepared and it is a matter of not making mistakes. [by jumping to people at the end of the value chain],” he said.
The VBS Mutual Bank was liquidated after more than R2.5 billion in government deposits and community schemes were looted and the levels of poor pensioners were looted in Limpopo province. The loss included R1.5 billion in illegal investments made by municipalities despite Treasury instructions not to do so.
In July, eight people, including the bank’s president, Tshifhiwa Matodzi, CEO Andile Ramavhunga, CFO Philip Truter and two employees of the Public Investment Corporation, appeared in court in connection with the R122 million that was stolen from the Bank.
This week, the Hawks arrested six high-profile individuals for their role in the R250 million project to audit homes for asbestos in the Free State.
They will be asked to plead guilty to a number of charges including fraud, money laundering, and violation of the Public Finance Management Act. Businessman Edwin Sodi, former head of the Free State human settlements department Nthimotse Mokhesi and former Mangaung metro mayor Sarah Mlamleli will appear in Bloemfontein High Court on 2 October. A seventh suspect, former National Director General for Human Settlements Thabane Zulu, turned himself in to the Hawks on Thursday afternoon.
The Zondo connection
The Free State has occupied a prominent place in the judicial commission of investigation into the allegations of state capture chaired by the vice president of the Supreme Court Raymond Zondo. He has heard testimonies about three contracts, with a combined value of R2 billion, that were awarded in that province during the last decade, and where state money was paid with no tangible results.
The sheer weight of the testimony led him to make the following reflection last Wednesday: “It is quite worrying that a large amount of money destined for the construction of houses for the people seems to have ended up in the hands of suppliers and contractors… more than R500 million they told me, and yet no houses were built.
“It is very worrying because the government is there to ensure that people get the services they need. A few weeks ago we heard evidence about the asbestos project. I heard evidence that the work could have been done at a cost of R21 million, but the provincial government gave the work to a joint venture for more than R250 million. “
He also referred to the Vrede dairy farm which never benefited black farmers, although millions were spent.
Evidence presented to the commission by its investigators shows that Sodi, whose company Blackhead Consulting was awarded the asbestos contract, made payments of R34 million to politically exposed persons.
Among them are top national leaders, ANC General Treasurer Paul Mashatile (R371 553.87), Labor Minister Thulas Nxesi (R45 000), State Security Minister Zizi Kodwa (R174 760), Health Minister Zweli Mkhize (R6 497,000) and Vice Minister of Communications Pinky. Kekana (170,000 rand).
Talking to City press Last week, Kodwa confirmed the payments, but said it was a matter between friends, while Nxesi’s office said the payments were school fees for the children of a deceased ex-unionist. Mkhize could not be reached for comment at the time of publication, but it is understood that the payments made to him were actually donations to the ANC. At the time, Mkhize was the general treasurer of the party.
Government officials involved in awarding the contract were also paid. Zulu was paid 600,000 rand to a car dealer where he bought a Range Rover, while the head of the provincial department, Nthimotse Mokhesi, was paid 650,000 rand for a property.
Zulu has previously said the payment was a refund to Sodi for a loan, while Mokhesi could not immediately be reached for comment.
ANC approach
Both the VBS and asbestos issues highlight the role the ANC plays, through its leaders, in diverting state funds. Corruption within the ranks of the organization’s leadership led President Cyril Ramaphosa to write a letter to ANC members in August saying that their collective failure to implement the conference’s resolutions on corruption had led to it flourishing. The letter was received with disdain by some quarters, including former President Jacob Zuma, who said it discredited the organization.
The ANC also received criticism from its alliance partners in July after it reinstated suspended Limpopo provincial executive committee members Florence Radzilani and Danny Msiza in their leadership positions. The two had been suspended for accusations related to deposits made by municipalities to VBS.
the M&G has previously reported that Terry Motau’s forensic investigation report on the theft of money at VBS determined that former Mayor Radzilani had complained about R300,000 allegedly given by the bank after her municipality deposited R300 million in the bank. The information was obtained from the phone of the former leader of the ANC Youth League, Kabelo Matsepe, who is widely considered to be one of the intermediaries between the municipalities and VBS. Motau also revealed that ANC Limpopo Provincial Secretary Danny Msiza and Matsepe thanked municipal officials who invested municipal money in VBS. Msiza recently won a court tender for Motau to set aside the findings against it in the report because it was not given an opportunity to respond prior to publication.
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