Mahikeng approaches court against VBS Mutual Bank

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The Mahikeng local municipality in the North West has approached the Limpopo High Court for an order for the final winding up of VBS Mutual Bank.

The municipality has invested more than R80 million with VBS. In court documents they state that they believe that the bank is unable to pay its debts.

A curator was appointed by the Reserve Bank in March 2018 to run the affairs of VBS.

The municipality is however of the opinion that the bank cannot be saved because of the public harm suffered and a lack of faith by the general public.

The municipality has since suspended its manager who was responsible for payments to VBS and started disciplinary proceedings against him.

The application will be made on November 6.

Meanwhile, the Democratic Alliance (DA) in Limpopo says Premier Stan Mathabatha lacks political will to deal with African National Congress (ANC) members and government officials implicated in the VBS saga.

The party marched to the premier office this afternoon to deliver a memorandum of grievances.

The DA is calling for the immediate removal of municipal managers who invested with the embattled bank.

The 10 municipalities in the province have invested over R1 billion in VBS.

Vhembe District Municipality mayor and ANC provincial deputy chair Florence Radzilani as well as treasurer Danny Msiza were mentioned in the VBS report.

The DA has accused the premier of cowardice in dealing with party’s heavyweights.

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