Payback time for former CFO convicted in VBS scandal
The Gauteng High Court (Pretoria) yesterday sentenced the former CFO of Collins Chabane Municipality to five years’ imprisonment for his role in the collapse of VBS Mutual Bank, reports The Citizen.
The court found Eadie Makamu guilty of contravening section 173(1) of the Municipal Finance Management Act but suspended the sentence for five years as long as he does not commit a comparable crime in that time.
Additionally, the court ordered Makamu to pay R150 000 to the VBS liquidator, who will distribute the money to those who lost funds due to the bank’s failure.
The Hawks said R60 000 had to be paid immediately. Makamu will settle the balance in five monthly instalments of R18 000.
The former CFO’s conviction stems from the municipality’s illegal investment of R120m with VBS.
Hawks spokesperson Colonel Katlego Mogale revealed the unit never recovered these funds.
‘Investigations revealed that some of the funds were used to pay brokerage commissions to individuals and entities in a scheme designed to attract more deposits from municipalities,’ Mogale said.
Makamu was arrested on 5 May 2022 and has been appearing in court alongside his co-accused, Charlotte Ngobeni.
Ngobeni will face trial alone from 20 to 22 January 2025.
The Hawks welcomed the conviction and said it marks another step in holding those responsible for the bank’s collapse accountable.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
