Samwu accuses provincial strongman Mathabatha of being tight-lipped about the bank closely associated with its loan to Zuma, The Citizen reported.
The South African Municipal Workers Union (Samwu) in Limpopo wants ANC provincial chairperson Stan Mathabatha to come clean about contentious investments made by municipalities in VBS Mutual Bank before the party’s conference this weekend.
The tiny bank first rose to prominence when it loaned then president Jacob Zuma R7.8 million in 2016 to repay state money improperly spent on his private home.
Read: Tension simmering between Muni and Giyani Radio Station
It was placed under curatorship by the SA Reserve Bank in March following reports that the mutual bank was facing a liquidity crisis after Treasury instructed municipalities to stop investing with the bank. A number of councils withdrew more than R1 billion from the bank after Treasury gave the order early last year.
The issue of the bank has now become a central point of dispute in Limpopo, where the ANC will hold its elective conference on Friday. It is set to be marred by controversy.
The Vhembe district municipality, for example, invested 57% of their operating budget, which amounts to R311 million, while the Greater Giyani municipality invested R158 million or 52.27% of their annual operating revenue.
For the full article, click here
