VBS Scandal: Polokwane Court Appearance Reopens Wounds of R150m Municipal Loss

Limpopo Corruption Case Revives Memories of VBS Scandal

More than six years after the VBS Mutual Bank scandal shocked the country, another chapter unfolds in the Polokwane Special Commercial Court — and South Africans are watching closely.

On Thursday, three accused individuals made their way into court, including two former high-ranking officials from the Lepelle-Nkumpi Local Municipality in Limpopo and a businessman who allegedly played middleman in a web of dirty dealings.

Thabo Ben Mathogoane, the former municipal manager, Rosina Ngoveni, the ex-Chief Financial Officer, and businessman Thapelo Molathlegi are now facing charges of corruption, fraud, theft, and violations of the Municipal Finance Management Act. Their alleged crime? Orchestrating a R150 million municipal investment into the now-defunct VBS Mutual Bank, and pocketing illicit rewards in the process.

What Went Wrong with VBS?

To understand the current outrage, you have to rewind to 2018, when VBS Mutual Bank collapsed spectacularly under the weight of fraud and mismanagement. What started as a niche bank catering largely to underbanked communities turned into a cautionary tale of systemic looting.

When the scandal broke, a forensic investigation uncovered that more than R2 billion had been siphoned from the bank through a complex network of bribes, false reporting, and illegal municipal investments — which are explicitly prohibited under national finance regulations.

While big names like Floyd Shivambu’s brother and VBS executives were previously dragged into the spotlight, the latest twist shines a harsh light on local government enablers who allegedly funnelled public money into the scam.

R150 Million Gone and a Car?

According to prosecutors, Mathogoane and Ngoveni allegedly facilitated Lepelle-Nkumpi Municipality’s R150 million investment into VBS. In exchange, Mathogoane reportedly received R100 000 directly and, even more brazenly, a vehicle financed by Molathlegi, using money allegedly linked to the investment.

The accusations strike a nerve — particularly in rural Limpopo communities where service delivery is sluggish and infrastructure remains underdeveloped. Locals have taken to social media with a mix of sarcasm and fury, asking: “How many potholes could R150 million fix?” and “Why are communities paying the price for municipal greed?”

Public Trust and Accountability on the Line

The VBS saga remains one of post-apartheid South Africa’s most disheartening financial scandals — not just because of the money lost, but because it exposed how deep corruption runs in municipal structures meant to serve the people.

For residents of the Lepelle-Nkumpi area, whose taps often run dry and roads go unrepaired, this case is not just about court dates — it’s about justice delayed, and hopefully, not denied.

Many feel that those implicated in local government corruption are too often shielded by bureaucracy and political protection. With this case back in the public eye, there’s renewed pressure on the justice system to deliver real consequences, not just headlines.

A Long Road Ahead

As the court proceedings continue, South Africans are once again left asking hard questions about financial oversight, municipal accountability, and whether we’ve truly learned from the VBS disaster.

Whether this trial brings closure — or further exposes rot within local governance — remains to be seen. But what’s clear is this: public trust can’t be invested and squandered like R150 million in a failed bank.

Source:SABC News

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