VBS Mutual Bank Saga: Court Orders Limpopo Businessman to Pay Back the Money

• Keaobaka Remigious Kgatitsoe who was involved in the VBS Mutual Bank saga will serve a suspended five-year sentence
• The Limpopo businessman has also been ordered to pay R260 000 to the liquidator of VBS
• Kgatitsoe is believed to have assisted the Fetakgomo Tubatse Local Municipality's chief financial officer move money

PRETORIA - A Limpopo businessman has been ordered to pay R260 000 while serving a suspended five-year sentence for his involvement in the VBS Mutual Bank saga. Keaobaka Remigious Kgatitsoe was charged with money laundering after being arrested for investing municipal funds in VBS.

The businessman assisted the Fetakgomo Tubatse Local Municipality's chief financial officer in submitting fictitious invoices to VBS linked to the investments made by the municipality. Hawks Spokesperson Colonel Katlego Mogale told News24 that Kgatitsoe is believed to have moved the received money through his accounts before paying a large portion to the chief financial officer.

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The Pretoria Specialised Commercial Crimes Court ordered that the money be paid to the liquidator of VBS. Six other suspects are also facing fraud, corruption, and money laundering charges for their alleged involvement in the scandal.

Nkhensani Ndengeza, Mabaso Nazo, Rotshidzwa Khazamula, Vuyelwa Matshangaza, Mangaliso Matshangaza, and Lazarus Matshangaza appeared in the Orkney Magistrates Court for a bail application. According to EWN, the matter was postponed to August for further investigation.

South Africans are outraged by the sentence, with many saying justice has not been served:

John Bowles said:

"What a disgrace with a sentence like that you will never stop corruption...Time in orange overalls is needed for plenty of years."

Mzo Mkhohlwa wrote:

"We are not equal in SA. I'm now thinking about the poor NSFAS student."

Simo Socikwa commented:

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"Petty crime will get you into trouble, but serious crime pays in this country. The courts are letting us down. What a shame!"

Deon Albertyn stated:

"Something must be very wrong with our justice system."

Gert Van Wyk posted:

"More suspended sentences come up with no jail for the criminals."

Colin Craig Broadfoot added:

"You call that a sentence. I call it a joke. How many old poor people suffered."

VBS saga: SARS wants Brian Shivambu to Pay R28.2 million for tax evasion, Floyd allegedly implicated

In a related matter, Briefly News also reported two companies owned by Brian Shivambu, who is EFF's Floyd Shivambu's brother, have received a tax bill of R28.2 million from the South African Revenue Service (SARS).

Shivambu is said to have attempted to evade paying taxes from the years 2017 to 2019 by not declaring income tax as well as VAT. Evading tax is considered a criminal offence and in Shivambu's case, it is also seen as intentional tax evasion, according to the Daily Maverick.

Source: Briefly News