By Silas Nduvheni and Anton van Zyl
The former municipal manager (MM) of the Vhembe District Municipality (VDM), Reuben Rambado, appeared in the Thohoyandou Magistrate's Court on Tuesday. He is charged with corruption and contravening sections of the Municipal Finance Management Act (MFMA).
When news broke of Rambado's court appearance, it was immediately linked to the VBS investment scandal. Rambado had signed off on at least one of the investments VDM made with VBS. The National Prosecuting Authority (NPA) has already charged several high-ranking officials at Vhembe municipalities for similar contraventions. In one such case, the former MM of Thulamela, Hlengani Emmanuel Maluleke, pleaded guilty and received a suspended jail sentence. In another, the former Chief Financial Officer (CFO) of Collins Chabane was also sentenced.
However, contrary to general belief, Rambado's charges are unrelated to the VBS investments. The NPA's Limpopo spokesperson, Mashudu Malabi-Dzhangi, said the corruption charges against him stem from allegations that he influenced panel members to appoint two candidates to municipal positions for personal gain or to improperly benefit the candidates.
Rambado made a brief court appearance late on Tuesday afternoon and was not asked to plead. The case was postponed to 23 April and transferred to the Giyani Specialised Commercial Crimes Court. He was released on R2,000 bail.
This raises the question of whether VBS-related charges will be added to Rambado's case, given that both involve the MFMA. A well-informed source confirmed that Rambado is being investigated for the VBS transactions and will likely be charged soon. However, it is unlikely that these charges will be merged with his current case, as separate investigative teams are handling them.
Who is Reuben Rambado?
The somewhat controversial Reuben Rambado was appointed MM of Vhembe District Municipality in June 2017. This was not his first stint as an MM—he previously held the same position at Makhado Municipality, where he was suspended in July 2004 over allegations of mismanagement. He later received a golden handshake and was redeployed as chief director in the Department of Communications.
On 5 July 2017, Rambado authorised an investment of R60 million in VBS on the recommendation of CFO Nyiko Mchavi. A week later, Mchavi approved another investment of R100 million, this time signed off by deputy CFO Marutha.
The 5 July investment was the only one signed off by a permanent MM in more than three years. VDM made two further investments—R150 million on 7 August 2017 and R200 million on 13 September 2017—both recommended by Marutha and signed off by Mchavi.
By the time VBS began collapsing at the end of 2017, VDM had more than R336 million tied up in the bank.
In November 2018, Rambado and Mchavi were suspended by the council. At the time, Mchavi threatened to reveal the "real" identities of those behind the VBS looting. Rambado later received a R1 million golden handshake.
What about the others who authorised VBS investments?
The NPA has already taken legal action against several other MMs and mayors.
On 27 November last year, Eadie Makamu, the former CFO of Collins Chabane Municipality, was found guilty of charges similar to those Rambado faces. He received a five-year prison sentence, wholly suspended for five years, and was ordered to pay R150,000 to the VBS liquidator.
Makamu was initially charged alongside the municipality's former MM, Charlotte Ngobeni, whose case is still pending. Meanwhile, the former mayor of Collins Chabane, Joyce Bila, appears to have avoided scrutiny from law enforcement. Bila has denied authorising the R120 million investment, stating that responsibility had been delegated to the MM and CFO. She was dismissed as mayor in December 2018.
One of the first officials to appear in court over the VBS scandal was the former MM of Thulamela Municipality, Hlengani Emmanuel Maluleke. He appeared in court in October 2023 and received a five-year prison sentence, wholly suspended for five years. He was charged alongside then-mayor Avhashoni Tshifhango, whose case is ongoing.
Earlier this year, the NPA announced it was pursuing cases against three individuals linked to the Giyani Municipality: former MM Risimati Hitler Maluleke, acting CFO Nditshedzeni Mashau, and businessman Zwivhuya Goodness Tshishonga.
Who will be next in the NPA's sights?
At VDM, former CFO Nyiko Mchavi must be having sleepless nights, as his role in the investments is undeniable.
One of the high-profile figures linked to the scandal is Limpopo MEC for Social Development Florence Radzilani. She was the executive mayor of VDM when the illegal investments were made and resigned in December 2018 under mounting pressure.
In her resignation letter, Radzilani maintained her innocence, stating that she was not involved in the VBS investments and was leaving office with a clear conscience after being "vindicated by two forensic investigations."
However, the SA Reserve Bank's report on the VBS debacle suggested otherwise. The report included a conversation between then-VBS chairman Tshifhiwa Matodzi and Kabelo Matsepe—described as "a politically connected fixer"—which implied that Radzilani had demanded more money to keep municipal funds invested in VBS. She has denied the allegations.
A report compiled for the Limpopo Provincial Treasury (LPT) suggested that Radzilani was either completely incompetent—having failed to understand her responsibilities—or had knowingly ignored legislation.
Radzilani claimed she had never been informed of where VDM had made investments and was unaware of whether the municipality had conducted background checks on VBS's registration, compliance, liquidity, and credit ratings. She said she had relied on officials to alert her to any irregularities, which, she claimed, never happened.
(The original article that appeared in the Limpopo Mirror linked Rambado with the VBS investments. This is incorrect, and we apologise for the error. Although it was confirmed that he is being investigated for such an offence, he did not appear in court on Tuesday in connection with the VBS investments. – Editor)