Parliament - Government would "aggressively pursue" lawsuits to recover as much of the R1.57 billion illegally invested by South African municipalities in the failed VBS mutual bank, Cooperative Governance Minister Zweli Mkhize told MPs on Tuesday.
Mkhize, while briefing Parliament's portfolio committee on cooperative governance and traditional affairs, said several of the 14 municipalities who invested monies from grants from National Treasury and from their own revenue with VBS were experiencing financial problems.
"It's not possible for R1.57 bln or even R2bln to just disappear, untracebable," Mkhize said.
"We need to really go aggressively to recover this money."
Mkhize said the three affected provinces - North West, Limpopo and Gauteng - had instituted forensic investigations to find out how the money was invested and who was responsible for the investments which breached the Municipal Investment Regulations.