North West Legislature's Public Accounts Committee (Scopa) chairperson Mahlakeng Mahlakeng tells OFM News that he understands that three of the accounting officials who were authorised to invest with the bank in the three of the four municipalities have resigned.

He says monies must be recouped from those who were found to have taken the decision to invest with the bank. Earlier, Moretele, Madibeng and Mahikeng local municipalities, as well as Dr Ruth Segomotsi Mompati District Municipality, appeared before the committee.

Mahlakeng says the committee is still awaiting a report on these municipalities and they are being closely monitored.

"Everybody's roles in the saga must be attended to or taken to account before the disciplinary committee. Those invested are no longer with the municipalities must also be brought to book because the law has to be taken into consideration,” says Mahlakeng.

OFM News earlier reported that the Municipal IQ – said the full financial impact of municipalities’ involvement in the VBS Bank scandal might only be felt this financial year and could cripple already cash-strapped municipalities.

Municipal IQ – an intelligence service specialising in monitoring and the assessment of municipalities raised its concerns over the massive investment of taxpayer’s money - worth millions of rands - with the controversial VBS Bank by at least 14 municipalities across the country.

In July, the Mahikeng local municipality said it had done nothing wrong to invest over R80 million with the troubled VBS Mutual Bank. 

Mahikeng invested about R85 million. Mahikeng used R25 million from its coffers and the other R60 million was the money national treasury paid to the municipality by mistake. Treasury was supposed to pay Mahikeng only R60 million, but R120 million was paid to the municipality.

OFM News