VBS saga: DA Limpopo threatens legal action against Stan Mathabatha
The party marched to Limpopo Premier Stan Mathabatha’s offices and handed over a memorandum on Tuesday.
JOHANNESBURG - The Democratic Alliance (DA) in Limpopo has threatened legal action against Premier Stan Mathabatha should he fail to have officials implicated in the VBS looting scandal held to account.
The party marched to the premier’s offices and handed over a memorandum on Tuesday.
The DA Limpopo leader Jacques Smalle says Mathabatha in his capacity as ANC chair must sack his deputy Florence Radzilani who has been implicated in the Great Bank Heist report.
“It’s clear that at this stage and up until today, there was a slow response from the premier and his office.”
At least R1.9 billion was illegally syphoned from VBS Mutual Bank.
A report commissioned by the central bank titled The Great Bank Heist found the money had been looted by several people from VBS, a small lender that bailed out former President Jacob Zuma after a corruption scandal.
The bank was thrust into the spotlight in 2016 when it provided a R7.8 million loan to Zuma to reimburse the state for upgrades to his private residence, after an outcry over lavish improvements including a swimming pool and amphitheatre.
In a ruling that hit Zuma financially and politically, the Constitutional Court ordered him to return some of the $16 million spent on enhancing the residence.
The report by the central bank released this month on its website said VBS was “corrupt and rotten to the core”.
In March, VBS was placed under curatorship by the central bank because of liquidity issues, meaning it can appoint an administrator to run the bank.
Additional reporting by Reuters.
(Edited by Shimoney Regter)