The municipality seeks to recover its illegally invested R83 million with the bank earlier this year after the municipality launched an application of its own in the Polokwane High Court. The North West municipality then changed its application, joining the Prudent Authority which had also lodged an application to have the bank liquidated after it turned out that the matter could not be taken to the Limpopo court. This, as the bank's operational jurisdiction is in Sandton, Gauteng.

OFM News previously reported that four municipalities in the province illegally invested at least R314 million, as revealed in the Seleka Xabanisa forensic report commissioned by Premier Job Mokgoro. The Xabanisa report found that R23 million was from the Municipal Infrastructure Grant, while R60 million was from the Municipal Equitable Share. Meanwhile, a case of fraud has been opened against the perpetrators at the municipality.

Earlier the Standing Committee on Public Accounts (Scopa) said Municipal officials involved in the illegal investment with the bank are soon again expected to be hauled before the committee to account for their involvement in the saga.

The Chairperson of the committee, Mahlakeng Mahlakeng, told OFM News that the municipality is not off the hook yet.

He said the committee had initially requested the municipality to suspend individuals involved in the controversial investment of R83 million.

The municipality’s investment was in contravention with the Municipal Financial Act (MFA).

OFM News