Mathabatha vows to recover money looted from VBS Bank

On Wednesday, Mathabatha announced the suspension of municipal managers and chief financial officers in several Limpopo municipalities.

Limpopo Premier Stan Mathabatha (seated left) briefing the media about 10 municipalities that invested money with VBS Mutual Bank. Picture: Clement Manyathela/EWN

POLOKWANE – Limpopo Premier Stan Mathabatha says that his government will do everything possible to recover money looted from the VBS Mutual Bank that belongs to government and the communities.

On Wednesday, Mathabatha announced the suspension of municipal managers and chief financial officers in several Limpopo municipalities.

He also confirmed that the illegal deposits of municipal funds into VBS has left seven municipalities cash strapped, saying that his government will now place at least two of them under administration.

While the South African Reserve Bank (Sarb) has made it clear that municipalities that deposited money with VBS are likely to lose that money, Mathabatha says the money must be recovered.

“We’ll have to recover in whatever way or whatever means. We’ll have to recover the money that belongs to the government and the people of Limpopo.”

He says his government will not allow a repeat of what happened at the bank.

“The provincial government is and will always be committed in the fight against corruption.”

The premier says a forensic investigation commissioned by his government is also looking at the involvement of mayors in the VBS scandal.

(Edited by Leeto M Khoza)