The Portfolio Committee on Cooperative Governance and Traditional Affairs has heard that municipalities which invested public funds in the now liquidated VBS Mutual Bank are facing financial crisis.
VBS Mutual Bank minority shareholders are meeting in Thohoyandou, Limpopo.
The VBS mutual bank scandal has claimed its first casualty in the Giyani Municipality in Limpopo.
Some VBS employees have finally signed retrenchment notices after days of rejecting them, while other workers are still refusing to sign.
ANC provincial spokesperson in Limpopo Donald Selamolela says the party strongly affirms that its officials implicated in the VBS Mutual Bank scandal will be dealt with without fear or favour.
The Hawks says it has assembled a strong, well-resourced team to investigate the looting of funds from the Venda-based VBS Mutual Bank.
United Democratic Leader Bantu Holomisa says President Cyril Ramaphosa should establish a task team to ensure those implicated in looting the VBS Bank are speedily brought to book.
The Hawks say that a team of investigators and prosecutors are conducting an investigation into those suspected of looting billions of rands from VBS Mutual Bank.
The Limpopo provincial government says it is necessary to save VBS Mutual Bank while law enforcement agencies continue to deal with officials who were involved in criminal activities
The African National Congress in Limpopo has rebuffed allegations of corruption and power-mongering against its Treasurer, Danny Msiza.