A former chief financial officer (CFO) of Collins Chabane Municipality, Eadie Makamu, was convicted for his role in the VBS Mutual Bank collapse. File Photo
A former chief financial officer (CFO) of Collins Chabane Municipality, Eadie Makamu, was convicted and fined R150,000 for his role in the VBS Mutual Bank collapse.
Makamu was sentenced on Wednesday by the North Gauteng High Court in Pretoria.
He was found guilty of violating the Municipal Finance Management Act by illegally investing R120 million in the bank.
He was sentenced to a five-year suspended prison sentence and ordered to pay R150,000 in restitution to the VBS Liquidator. The funds are intended to benefit those who lost their investments due to the bank's collapse.
Colonel Katlego Mogale, the Gauteng spokesperson of the Directorate for Priority Crime Investigation (DPCI) also known as the Hawks, said from the fine, Makamu was ordered to pay R60,000 immediately.
“The balance will be settled in five monthly instalments of R18,000,” she said.
Makamu was arrested in May 2022 and has been attending court alongside his co-accused, Charlotte Ngobeni, who will face trial from January 20-25, 2025.
“This conviction marks another step in holding those responsible for the VBS Mutual Bank collapse accountable. The recovery of funds through payments to the VBS Liquidator provides a measure of relief to victims, including municipalities and individual investors who suffered significant losses, said Mogale.
Earlier this month, former Fetakgomo-Tubatse municipal manager, Johannes Mohlala, who illegally invested R230 million of public funds in VBS Mutual Bank, was also handed a suspended five-year prison sentence by the same court.
Mohlala, 60, pleaded guilty to contravening the Municipal Finance Management Act and was ordered to pay R100,000 to the VBS curator.
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