Opposition parties in Limpopo have applauded the Auditor General (AG)’s decision to probe the role of Treasury and the South African Reserve Bank in the failure of VBS.

“We are in possession of a letter dated 19 June 2020, wherein the AG confirms that he will look into Treasury and SARB according to the AGSA policies, procedures as well as the relevant timelines,”said DA leader Jacques Smalle.

Limpopo municipalities allegedly invested money with VBS without council resolutions and transgressed all sections in Government Gazette NO 27431 published on the 1 April 2005 , MFMA and Municipal Investment Regulations.

In August 2017 National Treasury issued a directive to remind municipalities to take prudent steps to ensure that investments must be with credit-worthy institutions and compliant to gazette regulations.

Only three municipalities in Limpopo heeded the call and their investments were returned by VBS with interest.

The Fetakgomo Tubatse Local Municipality is among the

municipalities who invested into the mutual bank.

“We believe that there is a positive duty on Treasury to ensure compliance with financial regulations. Limpopo Provincial Treasury had knowledge of the illegal investments through the monthly Section 71 reports they receive from municipalities.

“We further believe that proactive steps from Treasury would have minimised the losses incurred by municipalities,”added Smalle


Please enter your comment!
Please enter your name here