Gauteng DA: Municipalities that invested in VBS must pay back funds
The call was made during a debate on Cooperative Governance Mec Lebogang Maile’s budget speech on Thursday.
The call was made during a debate on Cooperative Governance MEC Lebogang Maile’s budget speech on Thursday.
Maile tabled a R6.1 billion budget.
The West Rand and Merafong Municipalities collectively invested R126 million with VBS Mutual Bank in 2018.
The bank collapsed, leaving the councils dry.
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During Maile’s budget speech debate on Thursday, DA leader in the provincial Parliament, Solly Msimang, was fuming: “What is the department doing to recover the funds looted that it invested at VBS Mutual Bank?”
The West Rand District Municipality was hit by a number of protests after its failure to pay workers’ salaries.
An investigation by the provincial government has since cleared implicated officials believed to have deposited money into the collapsed VBS Mutual Bank.