Finance authorities in Gauteng to probe municipal investments with VBS bank
The Gauteng treasury is due to investigate investments that the West Rand district municipality and Merafong local municipality made with VBS Mutual Bank. In a statement on Tuesday, it said it would implement a forensic investigation into the circumstances surrounding investments made by the two municipalities. According to the Gauteng treasury‚ the West Rand district municipality had R81m invested with VBS and the Merafong local municipality R50m. The bank was placed under curatorship in March due to what the Reserve Bank said was a "severe liquidity crisis". As a result‚ the two Gauteng municipalities cannot access the invested funds. At the end of April the DA accused finance MEC Barbara Creecy of washing "her hands of the fact that ANC municipalities in Gauteng illegally invested its finances into VBS bank". The treasury said the aim of the investigation was to determine whether the investments breached the Municipal Finance Management Act and whether any official should be char...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.