‘Action must be taken against those involved in VBS scandal’

President Cyril Ramaphosa says action needs to be taken against those involved in the VBS Mutual Bank scandal.

In the latest developments, the Mahikeng municipality approached the High Court in Pretoria over the winding up of the VBS Mutual Bank.  The municipality has invested more than R80 million with VBS.

In the court documents the municipality stated that it believes that the bank is unable to pay its debts.

It is also of the opinion that the Bank cannot be saved because of the reputational harm suffered and a lack of faith by the general public.

President Ramaphosa was answering questions in Parliament for this final Q and A session for the year on Tuesday.

“Most of these depositors are struggling because their money is lost but it is also the municipalities of various areas in our country.”

“Action must be taken against those municipal officials, political officials who deposited council funds into VBS knowing that it was not legal and whose actions could lead to significant financial losses for those municipalities.”

“It is critical that every effort must be made to recover those monies , that is why we must act against those who are responsible.”

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Questions to which President @CyrilRamaphosa will provide oral replies in the National Assembly this afternoon.#RamaphosaQandA pic.twitter.com/P5ylXk1Phm

— PresidencyZA (@PresidencyZA) November 6, 2018