A closed VBS Mutual Bank branch, 9 July 2018. Picture: Facebook
Parliament’s portfolio committee is probing allegations that the municipal manager for Collins Chabane municipality in Limpopo forced junior officials to transport VBS Mutual Bank investment forms about 200km, from Malamulele to Limpopo Mediclinic in Polokwane, where she signed off an investment of R120 million without following proper investment regulations.
Three days later, soon after she was discharged from hospital, Tsakani Charlotte Ngobeni was allegedly seen driving a new Range Rover SUV.
A Democratic Alliance source for Collins Chabane said yesterday: “Allegations are rife that the money was a ‘thank you gift’ from the management of VBS and its shareholders.”
On Friday last week, parliament’s portfolio committee hearing chairperson and former communications minister Faith Muthambi said the committee wanted to know why it was necessary for junior officials to travel more than 200km … for the manager to sign the investment papers.
“The committee further wants to know if the investment got the blessing of the council and why management opted to disregard the Treasury ban for municipalities to invest public money into a mutual bank.
“We are also probing allegations that the municipality was awarding tenders to close family members, pals and to companies whose owners had close ties to senior municipal officials.
“This committee is not going to sit on its laurels and watch when people’s money is being embezzled left, right and centre…
“We are putting it to you that you failed in your duty to act.
“This means you are accessory to the crime and you must face the music,” said Muthambi during the hearing at the Vhembe district municipal chambers in Thohoyandou on Thursday last week.
Muthambi urged municipalities whose officials were entangled in the VBS investment saga to withhold their pension funds.
She also urged all municipalities implicated to lay criminal charges against those who ostensibly invested the money despite the order not to do so by Treasury and the South African Reserve Bank.
– news@citizen.co.za
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