Councils affected by VBS scandal will not be bailed out, Zweli Mkhize says
Some of the municipalities from the North West, Limpopo and Gauteng deposited about R1.6bn in VBS, contravening the municipal finance act and municipal investment rules
There will be no bail-out for municipalities affected by the VBS scandal, co-operative governance and traditional affairs minister Zweli Mkhize said on Tuesday. Mkhize told parliament’s portfolio committee on co-operative governance that the government was in discussion with its legal team around launching a lawsuit against those implicated, including municipal officials. This would be informed by the outcome of an ongoing forensic investigation, which is separate from the recent report on VBS‚ titled ‘‘The Great Bank Heist’’‚ which was commissioned by the SA Reserve Bank. The report detailed how the bulk of the stolen funds‚ close to R2bn‚ allegedly benefited individuals and entities related to VBS executives‚ including its largest purported shareholder‚ Vele Investments. Some of the municipalities from the North West, Limpopo and Gauteng deposited close to R1.6bn in VBS, in contravention of the Municipal Finance Management Act and the municipal investment regulations. In March, th...
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