Limpopo municipal managers, CFOs who deposited money with VBS Bank suspended
Premier Stan Mathabatha says his government has taken action against officials who contravened the law by depositing municipality’s funds with VBS Mutual Bank.
POLOKWANE - Limpopo Premier Stan Mathabatha has announced the suspension of municipal managers and chief financial officers in several Limpopo municipalities which illegally deposited money with the VBS Mutual Bank.
The premier confirmed that government's initial report shows 10 municipalities invested about R1.2 billion in the bank.
This has now led to many of them struggling to pay salaries and failing to deliver services.
He says three of the 10 municipalities received their money paid back from the bank with interest.
The Reserve Bank released a report titled The Great Bank Heist which revealed R1.8 billion was looted by the bank's executives, politicians and a former partner at auditing firm KPMG.
Premier Mathabatha says his government has taken action against officials who contravened the law by depositing municipality’s funds with VBS Mutual Bank.
“Vhembe District Municipality’s municipal manager Reuben Rambado and CFO Nyiko Machava have been suspended.”
But that’s only one of the seven municipalities implicated. He says other municipalities will suspend the officials on Thursday during council sittings, while others are concluding investigations before action can be taken.
Mathabatha says the forensic report government commissioned will release its findings at the end of this month.
LISTEN: 'There has never been an intention to rob the bank'
The premier has confirmed that the illegal deposit of municipal funds at VBS has left seven municipalities cash-strapped, saying his government will now place at least two of those under administration.
Mathabatha says his government is working hard to provide support to affected municipalities.
“We’ll ensure that basic service provision continues unabated at local level. Recovery plans are also being developed and implemented to ensure services are not compromised.”
He says government will even take control of some municipalities.
“I have also instructed the MEC for CoGTA to present in the next executive meeting the municipalities that should be put under administration.”
Despite the SARB’s Great Bank Heist report making it clear VBS Mutual Bank is rotten to the core and can’t be saved, the premier says they would like the bank to be rescued.
(Edited by Winnie Theletsane)