Municipalities that invested public funds in VBS Mutual Bank (VBS) are likely to be placed under section 139 of the Constitution following Premier Stan Mathabatha’s announcement earlier today (Wednesday) that some of these municipalities are not financially viable any longer following their investments with the bank.
Mathabatha was briefing the media at his office where he clarified that Fetakgomo-Tubatse and Greater Giyani municipalities are facing a terrible financial crisis and that the Executive Council would decide in due course whether section 139 should be imposed on the two municipalities.
Mathabatha’s media statement highlighted that the Vhembe District and Greater Giyani and Makhado municipalities have suspended municipal managers and chief financial officers for VBS implication while Fetakgomo Tubatse and Lepelle-Nkumbi municipal councils were expected to make decisions tomorrow (Thursday) during special council meetings.
“Municipalities are finalising their audit statements but the fact that accounting officers are suspended might affect audit opinions. The provincial forensic report is expected at the end of the month and the findings will guide us on what to do,” he explained, adding that the Provincial Government’s wish was to rescue VBS.
Story: ENDY SENYATSI
>>endy@observer.co.za
