The former acting CFO of Merafong Municipality in Johannesburg, Matthys Wienekus, has been arrested in connection with the VBS scandal.
Wienekus will be charged with one count of contravening section 173 of the Municipal Finance Management Act.
This is the first arrest at the municipality in connection with the VBS investigation.
Wienekus appeared in the specialised commercial crimes court in Pretoria for allegedly transferring R50-million of municipal funds into VBS bank despite it being illegal.
The transfer was made within 3 days of Wienekus being appointed acting CFO.
His arrest is separate from the recent arrests of the VBS 8.
The matter is postponed to 29 July, for the plea and sentence negotiations.