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Parliamentary committee heading to Limpopo after VBS scandal

Committee members will meet with municipal officials over the next several days to check on how service delivery’s been impacted.

FILE: The objectives of the visits are to ascertain the impact of the investments on those municipalities, the amounts invested and what's been recovered. Picture: Sethembiso Zulu/EWN.

CAPE TOWN – Parliament’s cooperative governance committee will be conducting oversight visits to troubled Limpopo municipalities, which illegally invested money in the now-defunct VBS Mutual Bank.

Committee members will meet with municipal officials over the next several days to check on how service delivery was impacted.

The committee’s visit to Limpopo comes amid fresh revelations of how a company linked to EFF leader Julius Malema channelled money from VBS to a slush fund linked to him.

The EFF is not the only party with members who have been implicated in the scandal.

The African National Congress in the North West decided to recall six mayors late last year, among them four who'd invested municipal money in the bank.

Of particular concern for MPs will be municipalities that invested in the institution and received repeated disclaimer audit opinions.

The objectives of the visits are to ascertain the impact of the investments on those municipalities, the amounts invested and what's been recovered.

They also want to know if any action has been taken against officials.