LIMPOPO – Mayors and managers from municipalities that invested with VBS Mutual Bank have been called to Pretoria for a special meeting ahead of the ANC Provincial Elective Conference.
The meeting was called by Senzo Mchunu, member of the ANC National Executive Committee (NEC) in light of the controversial investment of a conglomerate R1,5 billion by several municipalities in Limpopo.
The Vhembe District Municipality invested 34,57% of their operating budget while Greater Giyani Municipality invested R158 million, or 52,27% of their annual operating budget which has put these municipalities under immense strain to meet their service delivery promises.
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In light of this, the South African Municipal Workers Union (Samwu) in Limpopo wants current ANC Provincial Chairperson, Chupu Mathabatha, to address issues related to the investments before this weekend’s ANC Provincial Elective Conference.
The conference is set to start on Friday but CV can reveal it is already marred by controversy.
First Samwu, which is a mouthpiece for the province’s 27 municipalities, accuses Mathabatha of being tongue-tied about the investment while two regions, Waterberg and Peter Mokaba, threatened to interdict the conference.
The union claimed in an open letter that Mathabatha, who is also the province’s premier, dodged the matter since the national treasury revealed the investment with the controversial bank was ‘toxic’.
Samwu Provincial Chairperson, Sello Manayama, said meeting with the MEC for Cooperative Governance, Jerry Ndou, about the matter bore no fruit.
“Our municipalities are collapsing. They are unable to discharge their full potential in service delivery issues because the investment rendered them penniless,” said Manyama.
Department of Cooperative Governance Spokesperson, Paina Galane, confirmed the meeting and said the union was promised feedback on the matter in six months as the matter is being investigated by both national and provincial treasury.
With regard to the municipalities meeting with Mchunu at his offices in Pretoria, Galane said the meeting is poised to discuss issues surrounding the municipal investments with VBS Mutual Bank and the dangers surrounding the matter. On Friday, two regions, Peter Mokaba and Waterberg, threatened to interdict the conference on allegations that they were not in good standing.
The threat was quelled by a member of the ANC NEC, Thoko Didiza, who pleaded with the regions to withdraw they were put under the tutelage of a Regional Task Team structure (RTT).
This week, ANC Provincial Spokesperson, Aluwani Netsianda, assured the conference would continue despite the allegations.
“The matter raised by Samwu is currently receiving attention from government.
“We are equally disturbed by the investment saga but hope our leaders in government are on top of the matter,” Netsianda said.
Office of the Premier Spokesperson, Kenny Mathivha, said Mathabatha instructed the provincial treasury to conduct forensic audits in the municipalities that invested with VBS Mutual Bank.
Mathivha said the audit would commence in the next two weeks and last for a period of six months.
