Widespread service delivery issues at municipality that used VBS account‚ DA says
The municipality invested R245.1m with VBS‚ in contravention of the Municipal Finance Management Act
The provision of services at Fetakgomo Tubatse Municipality in Limpopo has deteriorated as a result of illegal investments in the VBS Mutual Bank over the years‚ the DA charged on Thursday. The DA has now called on the mayor to resign and for the municipal manager to be suspended. The municipality illegally invested R245.1m in the bank‚ in contravention of the Municipal Finance Management Act (MFMA), which does not allow municipalities to bank with a mutual bank‚ the DA said. Since it was not able to recover the money it deposited into VBS‚ it has been facing a number of problems‚ including a shortage of water. It was also affected by cash shortages to pay for services and planned infrastructure projects‚ such as roads maintenance. DA spokesperson in the municipality Lethabile Kgwedi said on Thursday that as a result of the deposits made into VBS since 2015‚ the municipality was facing service provisions challenges. “As councilors‚ we received a communiqué recently that we are not a...
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