Mkhize to update Parliament on VBS deposits

Tuesday, October 23, 2018

Cooperative Governance and Traditional Affairs (Cogta) Minister Zweli Mkhize will on Tuesday brief Parliament’s Cogta Portfolio Committee on municipalities that invested in VBS Mutual Bank. 

The briefing by the Minister will look at the state of service delivery and finances of municipalities which invested in VBS, the ministry said in a statement. 

“Minister Mkhize has also been requested to outline measures in place to ensure that municipalities are transparent about their investments and that service delivery is not compromised as a result of lost investments deposited in VBS,” read the statement. 

In September, Mkhize said several investigations had been launched with the aim of bringing to book those responsible for unlawfully investing municipal funds. 

Eighteen municipalities were recorded to have invested funds in VBS. This was contrary to the Municipal Finance Management Act and the municipal investment regulations. 

Two weeks ago, the South African Reserve Bank (SARB) released a scathing report into VBS. The forensic investigation report, conducted by Advocate Terry Motau and Werkmans, recommended criminal charges be laid against a range of individuals alleged to have looted about R2 billion from the financial institution. 

VBS was on 11 March placed under curatorship following what was termed a “serious liquidity crisis” at the mutual bank. The forensic investigation was prompted by a curator finding significant financial losses in VBS. 

The report, titled ‘The Great Bank Heist’, details how monies landed in the bank accounts of certain individuals. –