- Gilbert Kganyago unlawfully invested R60 million in VBS Mutual Bank during his time as mayor of Capricorn District Municipality
- He was subsequently suspended as secretary of SACP (SA Communist Party)
- The matter is under investigation, but the money has been successfully recovered
Limpopo's former mayor of Capricorn District Municipality, Gilbert Kganyago, has been suspended by the SA Communist Party after it came to light he was involved in the #VBSBankHeist.
Kganyago was suspended as SACP secretary on Friday 9 November, and the suspension was confirmed by Limpopo's spokesperson, Machike Thobejane.
News24 reports that Kganyago was suspended so he can clear his name, as the party wants it to be clear that they want to cooperate and follow the correct procedures.
According to the municipality's records, Kganyago brought up the concept of investing in black-owned institutions.
At that time, the municipality had invested just over R300 000 with FNB, R150 million with Investec and R301 million with Nedbank.
Kganyago led the decision in 2015 to invest the first R20 million in VBS Mutual Bank. The decision was made without any approval from the municipal council.
Later that same year, in December, another R40 million was invested.
In 2016, Mariette Venter, the deputy CFO, wanted the money to be recalled and reinvested somewhere else. She said the bank was not graded and wanted the money back.
Shortly after, Venter was informed she would be suspended. This led to the council demanding an investigation into VBS,
Fortunately, the current mayor, John Mpe, managed to recover the money from VBS. Venter's suspension was recalled.
South Africans just want justice for the looting:
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