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Hawks’ FDC raid in connection with now-defunct VBS

───   OLEBOGENG MOTSE 11:44 Sat, 06 Jul 2019

Hawks’ FDC raid in connection with now-defunct VBS  | News Article
PHOTO; Elsabé Richard

The Hawks’ search and seizure raid conducted at the offices of the Free State Development Corporation (FDC) in Bloemfontein on Friday was made in connection with the entity’s dealings with the now-defunct VBS Mutual Bank.


In response to speculation regarding a possible raid at the FDC’s Thaba Nchu offices, Hawks National spokesperson, Hangwani Mulaudzi, tells OFM News the entity’s Bloemfontein office was the only target of the raid. He says the investigating unit managed to seize documents and computers pertinent to their investigation, with arrests imminent.

The FDC came under the spotlight in 2018 following the release of Jerry Motau’s ‘Great Bank Heist’ report on the liquidated VBS. Motau alleged the FDC, along with 52 other entities and individuals, received “gratuitous payments” from the bank. The FDC vehemently denied that the more than R104 million was “gratuitous” stressing that it was an investment instead. The chairperson of the entity’s board, Hantsi Matseke, said at the time that the entity had loaned the bank R100 million in June 2017. The bank repaid its loan in four tranches, the last of which was R54 million.

Having had insisted there was ample evidence of the transaction in their financials, it was reported there was in actual fact very little trace of the exchange apart from an entry which indicated the entity was seeking about R 9,5 million from the Bank which was not accessible due to the Limpopo-based bank being placed under curatorship.

In a separate matter, the FDC was the implementing agent for the multi-million rand Vrede Dairy Project from which the Gupta family benefited, which came under the microscope during the Zondo commission’s inquiry into state capture.


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