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Victims of VBS bank looting urged to pursue civil action

Limpopo had the highest number of municipalities that illegally invested with the now-defunct bank, losing R1.2 billion.

FILE: Parliament’s portfolio committee on local government said the situation was dire. Picture: Sethembiso Zulu/EWN.

JOHANNESBURG - Parliament is calling on the victims of the VBS Mutual Bank scandal to pursue civil action against those who looted the institution.

This week, the cooperative governance committee is visiting Limpopo municipalities that illegally invested with the bank to assess service delivery.

The province had the highest number of municipalities that illegally invested with the now-defunct bank, losing R1.2 billion.

Parliament’s portfolio committee on local government said the situation was dire.

Service delivery has been affected, service providers are not being paid on time and suspended municipal officials are still receiving salaries with no planned disciplinary hearings.

The committee’s chair Faith Muthambi said those affected by the VBS bank looting must pursue those responsible for the bank’s collapse.

“There’s provision for people to pursue civil action… if they don’t do that, because this thing happened around 2017/2018, by the time they think about pursuing civil claims, it may be too late.”

Muthambi said the committee also picked up on municipalities over-reliance on consultants even though the metros have permanent chief financial officers.

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