Co-operative Governance and Traditional Affairs Minister Zweli Mkhize says his department was spooked by the discovery that VBS Mutual Bank held R1.6bn in municipal deposits and revealed it has formed a joint committee with the Reserve Bank. "We support the forensic investigation by the Reserve Bank into the deposits involving 15 municipalities. We are working closely with the [Reserve Bank] and have formed a joint technical committee working on the matter following my meeting with the governor ... "I will convene a meeting of mayors, municipal managers and [chief financial officers] to discuss this crisis and determine a way forward." Mkhize made the remarks while delivering his budget speech vote in Parliament on Tuesday, when he also detailed the dire administrative state of municipalities in the country. The department received R83bn for the 2018-19 financial year. SA has eight metros, 44 district municipalities and 205 local municipalities, most of which are under performing. M...
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