On Friday, the municipality suspended its manager Reuben Rambado and chief financial officer Nyiko Machava who are implicated in the bank’s scandal.
The municipality’s executive mayor and Limpopo African National Congress (ANC) deputy chairperson Florence Radzilani has also been implicated in the scandal.
The Reserve Bank’s forensic report found that the municipality had invested more than R 300-million in the mutual bank.
Municipal spokesperson Matodzi Ralushai says, “Precautionary suspension doesn’t mean that person is suspended – this just indicates that the two senior officials of the municipality must also be given an opportunity to make a written representation to the municipal council indicating why they should not be suspended. We expect to be done within seven days because the matter is getting serious attention from other spheres of government.”
Watch related videos: