DA to table no-confidence motion for municipalities that used VBS Mutual Bank
Fifteen municipalities deposited R1.6bn with the bank, which the Reserve Bank says is unlikely to be recovered, but the DA says their mayors may have been complicit
The DA is to table motions of no confidence against the mayors of municipalities that illegally deposited funds with VBS Mutual Bank, now under curatorship. A total of 15 local municipalities deposited R1.6bn with VBS in contravention of the Municipal Finance Management Act (MFMA) and after being instructed not to do so by the Treasury. The Reserve Bank believes it is unlikely that these municipalities will recover much, if any, of their money from the bankrupt institution, which was allegedly looted by its top executives. "It is unacceptable that these municipalities could potentially face collapse as their funds are unlikely to be recovered," DA spokesperson on co-operative governance and traditional affairs Kevin Mileham said. Those responsible had to be held accountable. "Some of the implicated municipalities are among the worst run and most financially unstable municipalities in the country. It is a damning indictment on all the mayors of the affected municipalities as they may...
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