Another ANC mayor fired over VBS scandal

The ANC in Limpopo has once gain wielded the axe, firing a mayors in the province who may have had a hand in the irregular investment of municipal millions in the collapsed VBS Mutual Bank.

The party announced yesterday it has fired the mayor of Thulamela local municipality, Mushoni Tshifhango.

The party claims the reason for its action was his alleged involvement in the illicit investment of municipal funds into the bank. The municipality invested R30 million into the bank against Treasury regulations and Municipal Finance Management Act.

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Tshifhango is the eighth ANC mayor fired for the wayward municipal investments.

Three years ago, Limpopo premier Stan Mathabatha and ANC Limpopo provincial secretary Soviet Lekganyane fired seven other mayors for similar offences.

According to the Act, municipalities are forbidden from investing public funds with a mutual bank. A total of 15 municipalities from North West, Gauteng and Limpopo invested a combined R1.5 billion into the bank.

Nine of them were from Limpopo and their investment amounted to R1.2 billion.

When the ANC fired the seven mayors, those from Polokwane and Thulamela municipalities were spared because the municipalities did not suffer any financial damage.

Last month, MEC for cooperative governance and traditional affairs Basikopo Makamu, who doubles up as Limpopo ANC deputy provincial secretary, ordered the Thulamela municipality to urgently implement remedial action in line with Treasury regulations after the provincial investigations into VBS investments proved that councils were reckless and transgressed Treasury
legislations.