The Democratic Alliance (DA) is calling on the Treasury’s Municipal Recovery Service Unit (MFRS) to intervene in Limpopo municipalities which lost public funds in the now liquidated VBS Mutual Bank.
DA MP, Haniff Hoosen, says the party will write to Finance Minister, Tito Mboweni, to ask him to allow the unit to intervene in the municipalities that are facing financial crisis.
Hoosen was part of the members of the Portfolio Committee on Co-operative Governance and Traditional Affairs which met the affected municipalities last week.
DA’s Hoosen says the affected municipalities are struggling to meet their financial obligations. He also says that service delivery has been negatively affected.
A total of 11 Limpopo municipalities lost more than R1.2-billion in VBS investments. Hoosen says the looming financial crisis in the VBS municipalities requires urgent intervention.
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