#VBSBank: Mayor in hot water over missing R50m
It has now emerged that the Dr Ruth Segomotsi Mompati District Municipality in Vryburg had actually invested R101 million, not the R150m previously stated.
Records in the “Greatest Bank Heist” report compiled by advocate Terry Motau have indicated that the municipality had invested only R101m with VBS. But municipal manager Jerry Mononela said in a forensic report commissioned by the North West provincial government that the municipality had invested R150m.
The Sekela Xabiso forensic report indicated that Mononela fully co-operated with their investigations, while former chief financial officer Segomotso Phatudi - who invested the cash in February and March - refused to co-operate with the investigators.
Now opposition parties in the district municipality want mayor Boitumelo Mahlangu to resign and have expressed their outrage after an indefinite postponement of a council meeting which was due to be held tomorrow. The EFF and DA wanted the issue of the missing millions to be discussed, among others.
Mahlangu has again ignored attempts to solicit her response after new allegations that the municipality had invested only R101m and the whereabouts of the R49m still remained a mystery for councillors and officials alike.
ANC North West spokesperson Kabelo Mataboge promised to respond but failed to do so by the time of publication.
On Monday, EFF North West deputy chairperson Mothusi Montwedi said his party’s councillors believed that the “indefinite postponement” of the meeting was aimed at blocking them from presenting their motion of no confidence against Mahlangu.
The motion was initially supposed to have been tabled during a council meeting on November 8, but that meeting was disrupted.
In their motion, EFF chief whip Tiratsaone Mocumi said the R150m was supposed to have been used for the provision of services to the community, but it went “down the drain under the watchful eye of the executive mayor (Mahlangu)”.
“The decision to invest conditional grants has affected provision of service delivery severely, in that the contractors that are on site appointed for water projects have not been paid for over three months now, with the desperation for provision of free basic services growing day by day,” the motion reads.
Montwedi and DA North West leader Joe Mcgluwa want law enforcement agencies to act and charge all those involved in the “VBS illegal investment”.
The EFF also wants a forensic investigation instituted for the 2016/2017 and 2017/2018 financial years.