The VBS Mutual Bank case involving a Collins Chabane municipality manager, Tsakani Ngobeni, has been postponed to July 29 for further investigations.
Ngobeni appeared briefly before the Palm Ridge Specialised Commercial Crimes Court on Thursday.
She was previously released on R50,000 bail after being charged with corruption and the contravention of the Municipal Finance Management Act (MFMA).
She is accused of having deposited R120m of the municipality's funds, in violation of the MFMA and the Collins Chabane municipal policy, which dictate that municipal deposits be restricted to banks that are registered in terms of the Banks Act, which VBS was not.