VBS Mutual bank customers at long queues outside the bank, demanding their money in Thohoyandou, Limpopo. Picture: ANTONIO MUCHAVE/SOWETAN
VBS Mutual bank customers at long queues outside the bank, demanding their money in Thohoyandou, Limpopo. Picture: ANTONIO MUCHAVE/SOWETAN

Limpopo ANC treasurer Danny Msiza has stepped down from that position after he was embroiled in the VBS Mutual Bank scandal.

In October, a forensic report compiled on behalf of the SA Reserve Bank into allegations at VBS by advocate Terry Motau and Werksmans Attorneys placed Msiza as a commission agent in Limpopo, which ensured that municipalities illegally deposited funds into VBS.

The ANC in Limpopo on Wednesday confirmed that Msiza “accepted” a decision by the ANC’s national working committee that he must step aside until his name was cleared.

Msiza launched a court challenge against the forensic report in October. He resigned from the position in a letter to ANC secretary-general Ace Magashule on Tuesday, but said his decision was not an admission of guilt.

The ANC’s integrity commission previously recommended that Msiza and deputy chair in the Limpopo ANC, Florence Radzilani, “step aside” from all party activities until their names have been cleared.

Radzilani, who is also mayor of the Vhembe district municipality in the province, submitted her resignation as mayor on Tuesday.  

This came on the same day the ANC in Limpopo announced that it had fired the seven mayors whose municipalities lost money that it had deposited in VBS at the time the bank was placed under curatorship.

The Reserve Bank placed VBS under curatorship in March after withdrawals by municipalities led to a cash crunch. The report showed that R3.4bn was deposited from January 27 2015 until the bank was placed under curatorship, and that payments made to municipalities amounted to just more than R2.3bn.

On April 30, R1.2bn remained from 14 municipalities, and this amount included fees and interest.

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