The Department of Basic Education (DBE) has confirmed through a media statement on its social platforms that one of the suspects arrested on Tuesday by the Hawks, in connection with the collapse of VBS Mutual Bank, works for the department.
The statement further said the North West Education Administrator was arrested on charges related to his previous employment as a Municipal Manager of Greater Tubase in Limpopo.
The department confirmed that the arrest is related to the ongoing investigation by Hawks on the collapse of VBS, which saw a number of elderly women losing their savings to the bank.
The arrested Administrator was brought forward to assist with the turn-around processes as the department was placed under administration, said the statement.
The Department of Education, together with other departments, in the North West was placed under administration (in terms of Section 100 (1b) in 2019 following irregularities related, among others, to supply chain, finance, human resources and audit findings of the Auditor-General.
Minister Motshekga is said to be looking into the matter and is considering appointing somebody else temporarily pending the investigation process.
The department stated that when the Administrator was appointed to the position there were no criminal charges under his name and all due processes leading to his appointment were followed.
Reports said the suspects were a 57-year-old former municipal manager and a 39-year-old former chief financial officer (CFO) from Fetakgomo Tubatse Local Municipality in Limpopo, as well as a 41-year-old owner of a private business.
Hawks arrested three suspects at their residences around Tshwane following their investigations into the VBS matter on Tuesday morning, reports said.
The three suspects are due to appear at the Pretoria Specialised Commercial Crimes Court on Wednesday on charges of corruption, money laundering and the contravention of Section 173 of the Municipal Finance Management Act.
[DBE NEWS] The Department of Basic Education notes the arrest of North West Education Department administrator.@ElijahMhlanga pic.twitter.com/YvyvFoynJm
— Dep. Basic Education (@DBE_SA) November 16, 2021
