Municipalities which invested in VBS Mutual Bank facing financial crisis

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The Portfolio Committee on Cooperative Governance and Traditional Affairs has heard that municipalities which invested public funds in the now liquidated VBS Mutual Bank are facing financial crisis.

Limpopo municipalities have lost more than R1.2-billion.

Thousands of residents in the Fetakgomo-Tubatse Municipality have been without electricity after a multi-million rand electrification project called Operation Mabone was stalled.

This after the municipality has invested more than R240-million in VBS.

Other affected municipalities include Ephraim Mogale (which lost R84-million), Elias Motsoaledi and Lepelle-Nkumpi in the Sekhukhune district.

Committee Chairperson Faith Muthambi says they will make sure public funds meant for service delivery and lost in investments are recouped from implicated officials.

“We’re going to monitor the programme every three months…and make recommendations that the money be recouped because already you can see now this is wasteful and fruitless expenditure,” says Muthambi.