FTLM’s ex- MM sentenced, warrant of arrest issued for former CFO
BURGERSFORT
Former Fetakgomo Tubatse Local Municipality (FTLM)’s municipal manager (MM) Johannes Mohlala’s chickens have come to roost. Mohlala (60) was on November 6 sentenced for VBS heist offences by the Pretoria High Court.
He has been sentenced to five years imprisonment by the court. But the sentence is suspended for five years on condition he is not found guilty of the same offence in that period. The court also ruled that he should pay R100 000 to the curator of VBS Mutual Bank.
“In one of the segments in the broader VBS investigation, Mohlala pleaded guilty under Section 105A of the Criminal Procedure Act 51 of 1977, as well as for contravening Section 173(1) of the MFMA. He was sentenced on the same day,” said Colonel Katlego Mogale of Gauteng Hawks.
Another accused, the FTLM’s former CFO, Tumelo Ratau (42), did not attend court and a warrant for his arrest has been issued. The case was postponed to November 18 for the forfeiture of his bail.
Under Mohlala and Ratau’s management, the FTLM had invested a whopping R230m with VBS Mutual Bank, despite a National Treasury directive that restricted this kind of investment. The whole amount was never paid back to the municipality.
The third accused in the case, businessman Keaobaka Remigious Kgatitsoe (44), the owner of Kelotlhoko Property Services, had previously been sentenced to five years’ imprisonment when he appeared in the Pretoria Specialised Commercial Crimes Court back on July 12, 2022.
“Kgatitsoe, the owner of Kelotloko Property, assisted the chief financial officer of the municipality to submit fictitious invoices to VBS linked to the investments made by the municipality.
“Kgatitsoe moved the received money through his accounts and eventually paid the biggest portion over to the chief financial officer,” said Mogale.
Gauteng National Prosecuting Authority’s Lumka Mahanjana said Kgatitsoe entered into a plea bargain with the state in terms of section 105A of the Criminal Procedure Act.
“He was found guilty for money laundering and sentenced to five years’ imprisonment wholly suspended for five years on condition that he is not found guilty of money laundering during the period. He was also ordered to pay back the amount of R463 955 to the liquidator of VBS. The amount must be paid back in four instalments,” she added.
The trio were arrested in Pretoria on November 16, 2021, on allegations of contravention of the Municipal Finance Management Act (MFMA) 56 of 2003 for investing municipal funds with VBS Mutual Bank. The R230m invested with VBS was paid in five tranches from November 15, 2016 to February 19, 2018.
“The allegations regarding this matter were reported and an investigation was opened,” added Mogale.
On November 17, 2021, the three men appeared in the Pretoria Specialised Commercial Crimes Court on charges of contravention of Section 173(1) of the MFMA, corruption and money laundering. Mohlala and Ratau were out on a R50 000 bail before their scheduled appearance at the court.
