The South African Local Government Association, (SALGA) says it does not believe that it will be possible to recover the millions of rands invested by some municipalities in the collapsed VBS Mutual Bank. SALGA briefed the Joint Standing Committee on Appropriations and Select Committee on the state of the country’s municipalities.
Director of Audit Support at SALGA, Mohammed Lorgat, says at the time the bank was put under curatorship- some municipalities had invested more than R1.2 billion in VBS.
“There is also been an issue of the municipality resource funds in the collapse of the VBS mutual bank. Municipalities have deposited more than R3 billion since 2015, and at the time when the bank was placed under curatorship-there was a figure approximately of about R1.2 billion by municipalities that were investing in the bank. In all likelihood that money is not going to be achieved by the municipalities again.”
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