Receiving a briefing on the state of Mahikeng and Madibeng Local Municipalities, the National Council of Provinces (NCOP) heard how municipalities in the province are still battling to provide services to its residents largely due to these issues. The administrator of Madibeng Local Municipality, John Motlogelwa, and Mayor of Mahikeng, Betty Diakanyo, have both confirmed the financial rut experienced in their respective municipalities stating that they indeed need intervention from the provincial government.

The two municipalities are amongst the four North West municipalities that have invested more than R314 million of taxpayers’ money with the now liquidated VBS Mutual Bank.

While the NCOP has heard how municipalities in the province are still crippled by the VBS investments, it has also come to light that they continue incurring irregular expenditure.

Members of the NCOP have so far expressed their concern at the state of the Madibeng and Mahikeng Local Municipalities stating that residents are worst affected by poor decisions made by management and political heads of these municipalities.

A report titled "The Great Bank Heist" by advocate Terry Motau, illustrated how billions were looted from the bank and how municipalities’ investments with the bank were contrary to the Municipal Financial Management Act (MFMA), as VBS Mutual Bank was not registered as a bank in terms of the Banks Act.

It was found that the Madibeng Local Municipality invested R31 million of their conditional grant, the Dr Ruth Segomotsi Mompati District Municipality invested R150 million, the Moretele Local Municipality invested R50 million from their water services infrastructure grant and the Mahikeng Municipality, invested over R83 million.

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