16 October 2026 · Verified against dated reporting and official statements.

A fresh hearing in the VBS fallout

The trial of three people accused in connection with Giyani Municipality’s deposits into VBS Mutual Bank resumed in the Polokwane Specialised Commercial Crimes Court on Thursday, 15 October 2026. The defendants are former municipal manager Risimati Maluleke, former acting chief financial officer Nnditshedzeni Mashau and businessman Zwivhuya Tshishonga.

The prosecution alleges that the three helped facilitate investments exceeding R140 million from the Limpopo municipality into the now-defunct bank. These are allegations under examination in court, not findings of guilt.

A warning the municipality allegedly ignored

SABC News reported that a protected state witness testified that Giyani transferred R100 million and later a further R40 million to VBS despite a Treasury warning against placing municipal funds with mutual or non-mainstream banks.

The witness also alleged that inducements were paid to officials to encourage municipal deposits. Those claims must be tested in cross-examination and assessed against the rest of the evidence. The witness’s identity has not been made public, and this report does not attempt to identify them.

What the collapse cost municipalities

VBS Mutual Bank collapsed after a major corruption scandal that left municipalities and other depositors facing losses. The public-interest Accountability Tracker lists Greater Giyani among local authorities that placed substantial funds in the bank.

For residents, the core issue is not only whether particular officials can be held criminally accountable. It is also how public money that should have been available for municipal services was put at risk and whether governance safeguards were disregarded.

What remains unresolved

The state witness had completed evidence-in-chief and was due to be cross-examined by defence counsel. The defence has the right to challenge the evidence, and the court has not made final findings on the contested bribery allegations.

The case is one strand of a much wider reckoning with VBS. A responsible account must keep the legal process, the bank’s established collapse and the specific charges against these three defendants separate.

Sources and verification

This report distinguishes police statements and court evidence from untested claims. Source material: