The poor will suffer the most in VBS saga, says Municipal IQ
‘Some municipalities will face financial problems because they have more than 60% of their operating budgets tied up in VBS Mutual Bank’
The poor will be the most affected by the VBS Mutual Bank scandal. This is what Municipal IQ — which specialises in local government data — concluded after a forensic report, The Great Bank Heist, was published on Wednesday. The report‚ compiled by advocate Terry Motau and Werksmans Attorneys‚ goes into detail about how the bank heist allegedly occurred and lists a number of former executives of VBS and its largest shareholder‚ Vele Investments‚ who were the alleged perpetrators and beneficiaries of the crime. Municipal IQ economist Karen Heese said some municipalities will face financial problems because they have more than 60% of their operating budgets tied up in VBS Mutual Bank. These include the Collins Chabane‚ Dr Ruth Segomotsi Mompati‚ Greater Giyani and Lepelle-Nkumpi municipalities. “None of these municipalities are in wealthy localities and many residents depend on them for indigent support. Ultimately‚ it is the poorest of the poor who will pick up the tab for the shamel...
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