Concern over lack of cooperation from municipalities who invested with VBS

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Limpopo government has bemoaned what it calls lack of cooperation from municipal managers who invested money with VBS Mutual Bank.

The provincial government is conducting a forensic investigation into one of the country’s largest financial scandals.

There is no end in sight in the VBS saga. About 10 municipalities in the province deposited a combined R1 billion into VBS.

Vhembe District Municipality invested more than R300 million with the Mutual Bank.

The government says the information on why the money was invested has not been forthcoming

Limpopo Government Spokesperson Phuthi Seloba says, “Why a municipality like Collins Chabane, which has been formed recently and has very few executives, can’t come with the information concerning what really happened when the money was deposited?”

Seloba says those who are implicated in the VBS scandal must voluntarily resign from the positions.

“People who are implicated should not continue to occupy their positions while the investigations on the matter continue.”

Meanwhile, a new structure named Vuwani Demarcation Task Team has been formed.

The team is advocating for the formation of a fifth municipality in Vhembe to resolve the Vuwani impasse.

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Meanwhile, Fetakgomo Tubatse residents in Burgersfort, Limpopo, say the municipality’s decision to invest the public funds in VBS Mutual Bank has robbed them of improved services.

The municipality has invested more than R240 million with the troubled bank.

According to the Municipal IQ report, the municipalities that invested money into VBS are most likely going to experience service delivery challenges.