Co-operative Governance and Traditional Affairs Minister Zweli Mkhize says municipalities affected by the collapse of VBS Mutual Bank are expected to report back to his department on the issues around their finances and the effect on service delivery within a month. Some of the municipalities deposited about R1.5bn in VBS. In March, the Reserve Bank placed VBS under curatorship after it faced a liquidity crisis. Treasury deputy director-general Ismail Momoniat has told Parliament that the Treasury is worried that the unavailability of funds invested by municipalities in VBS would affect service delivery. Their deposits are not guaranteed. VBS clients with less than R1,000 in their accounts must close their accounts before the end of August, according to reports, in an attempt by the curator to ease pressure on the beleaguered bank. But the curator dismissed claims that the bank was shutting down in two months, the SABC reported. Delivering his budget speech in the National Council o...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now