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Former municipal manager sentenced for investing R230 million in VBS scandal

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Staff Reporter

Former Fetakgomo-Tubatse Local Municipality manager, Johannes Mohlala, was on Thursday sentenced by the Pretoria High Court to five years’ imprisonment, suspended for five years, on condition that he is not found guilty of a similar offense during this period.

Mohlala’s sentence includes a condition that he not be convicted of a similar offense within this period, and he must pay R100,000 to the Curator of VBS.

During the VBS investigation, Mohlala, identified as accused number one, pleaded guilty under Section 105A of the Criminal Procedure Act of 1977 for violating Section 173(1) of the Municipal Finance Management Act (MFMA) and was sentenced on the same day.

Former Fetakgomo-Tubatse CFO, Mr. Ratau, failed to attend court, prompting a warrant for his arrest.

The case is set for bail forfeiture on November 18, 2024.

Keaobaka Remigious Kgatitsoe was also sentenced to five years’ imprisonment, wholly suspended for five years, in the Pretoria Specialized Commercial Crime Court on July 12, 2022, in connection with the Fetakgomo Tubatse Local Municipality’s VBS investments.

Mohlala (60), Ratau (42), and businessman Kgatitsoe (44) were initially arrested in Pretoria on November 16, 2021, for allegedly violating the Municipal Finance Management Act by investing municipal funds with VBS Mutual Bank. Investigations revealed the municipality invested R230 million in five tranches between November 15, 2016, and February 19, 2018.

The three appeared in the Pretoria Specialized Commercial Crimes Court on November 17, 2021, facing charges of MFMA violations, corruption, and money laundering.

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