Municipalities that invested in VBS Bank in dire financial distress

VBS Mutual Bank
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Limpopo municipalities that invested with the troubled VBS Mutual Bank are facing financial constraints.

Ten municipalities, including the newly-formed Collins Chabane in Malamulele and Tubatse in Burgersfort, have invested more than a R1 bln in VBS.

The Reserve Bank has placed the bank under curatorship.

 Tubatse Municipal spokesperson Kubjane Tolo says the new budget passed in July has come in handy as they had started experiencing problems.

“The VBS issue is affecting us very badly on the basis that some of the amounts that were invested was monies that was supposed to be used as far as service delivery is concerned. We are waiting for those processes that are continuing at this point in time since we approved our new budget, we are continuing with services to our people,” says Tolo

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