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Giyani municipality employees fear salary cuts following VBS scandal

VBS Bank
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Workers at the Greater Giyani municipality in Limpopo have expressed fears that they might face salary cuts due to the municipality’s investment into the now liquidated VBS Mutual Bank.

Mayor Sasavona Mathebula was dismissed alongside six other mayors in the province for their involvement in the VBS scandal.

The municipality earlier suspended its CFO while the Technical Director resigned.

The Giyani municipality illegally deposited R165 million into the mutual bank – despite the Municipal Finances Management Act barring municipalities from investing in mutual banks.

SAMWU shop steward Noel Baloi says: “The municipality should do a thorough investigation as to who are involved in the issue of the VBS – and take the necessary steps around this issue because R162 million has been lost – which could play a pivotal role in terms of delivering services in the Greater Giyani municipality.”

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