South Africa 7.9.2018 08:40 am

North West municipality to appear before Scopa over VBS Bank investment

A closed VBS Mutual Bank branch, 9 July 2018. Picture: Facebook

A closed VBS Mutual Bank branch, 9 July 2018. Picture: Facebook

Madibeng local municipality reportedly invested over R50 million in the troubled bank.

The Madibeng local municipality in the North West is expected to appear before the Provincial Public Accounts Committee on Friday, to account on its investment with the VBS Bank.

Madibeng reportedly invested over R50 million in the troubled VBS Bank. The municipality is one of four North West municipalities that had invested taxpayers’ money in VBS Bank.

The others were Mahikeng local municipality which invested over R80 million, Dr Ruth Segomotse Mompati District municipality R100 million and Moretele local municipality invested over R70 million.

The Reserve Bank placed the bank under curatorship in March as it was facing a severe liquidity crisis and could not repay deposits as and when required.

Since VBS has been placed under curatorship, the municipalities that invested with the bank have not been able to access their funds. This money was intended for, among other things, service delivery.

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