The Special Investigating Unit (SIU) has made two criminal referrals to the National Prosecuting Authority (NPA). The SIU confirms it has finalised an investigation into the procurement of ICT goods and services by the municipality and identified cash and assets to the value of R154 million that could be recovered. 

The unit responsible to investigate fraud and corruption and recovering financial losses in government spheres, says two referrals for the disciplinary hearing at the municipality have also been made while the matter has been referred to the Special Tribunal. The Moretele Municipality is amongst four North West municipalities still in trouble for their investment in the now liquidated VBS Mutual Bank.

OFM News has previously reported on how the municipality lost millions through their investment in the now liquidated bank.

A report titled "The Great Bank Heist" by advocate Terry Motau found that municipalities had invested in VBS even though this was forbidden by the Municipal Finance Management Act (MFMA). It illustrated how billions were looted from the bank and how at least 20 municipalities’ investments with the bank were contrary to the MFMA, as VBS Mutual Bank was not registered as a bank in terms of the Banks Act.

Of the North West municipalities, 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.

OFM News