Municipalities fail to act against VBS-linked bosses

Johannesburg - Some of the North West municipalities implicated in the VBS Mutual Bank scandal have ignored directives to act against their municipal managers and chief financial officers who invested millions into the controversial bank without council approval.

The North West provincial government under Premier Job Mokgoro was now expecting a report from the MEC for Local Government Fenny Gaolaolwe about measures taken by the four municipalities to implement the recommendations of the Sekela Xabanisa CA Inc, which produced a forensic report and recommended legal action against those involved in the saga.

Spokesperson for the premier Vuyisile Ngesi said the provincial cabinet was due to sit before the end of the month and the VBS matter was one of the items on the agenda.

“The cabinet will be expecting a report from MEC Gaolaolwe on measures taken by the four municipalities against officials implicated in the report,” Ngesi said.

He said the cabinet would then decide on what action to take against the municipalities that had failed to implement recommendations of the forensic report.

Only the Mahikeng Local Municipality had suspended its municipal manager. Workers at the municipality have for the past two months been engaged in a go-slow action, demanding the dismissal of those who invested R83million with VBS.

Mahlakeng Mahlakeng, chairperson of the North West standing committee on public accounts (Scopa), confirmed that several municipalities had not complied with instructions to lay criminal charges against those involved in the illegal investments with VBS.

The Star