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Collins Chabane Municipality takes measures to recover after VBS saga

Mayor Joyce Bila’s administration deposited R120 million with the mutual bank money it will never recover.

FILE: VBS Mutual Bank in Thohoyandou. Picture: Sethembiso Zulu/EWN.

JOHANNESBURG – The Collins Chabane Municipality in Malamulele, Limpopo, says it has now taken measures to try and generate funds after losing millions in the VBS Bank looting.

This includes a traffic office with fines adding to new revenue.

The municipality came into existence after the 2016 local government elections.

Mayor Joyce Bila’s administration deposited R120 million with the mutual bank money it will never recover.

Eight municipalities have lost almost R1.2 billion.

Bila has described the deposit with VBS bank as unfortunate.

While others such as Fetakgomo Tubatse Municipality have already conceded that they will not be able to pay salaries but Bila says officials in her area should not worry.

She says a recovery plan has been adopted by the council for the 2018/19 financial year.

But she says the budget will be R120 million in the red and serious work will have to be done to recover from this.

The mayor says while this happens, all corrupt officials must be prosecuted.