‘VBS problems inherited’ – CDM

I nvestments at VBS Mutual Bank (VBS) were made before the term of office of Capricorn District Municipality (CDM) Executive Mayor, John Mpe and the current leadership of the municipality took immediate and decisive action to withdraw the invested funds and institute disciplinary proceedings against officials involved.
This was confirmed by Mpe during a media briefing on Tuesday in response to claims reportedly made by Solly Mapaila, First General Secretary of the South African Communist Party (SACP) on Monday. Mpe said Mapaila had made statements that could reflect negatively on CDM’s involvement in the VBS saga. Mpe did not elaborate on the details of the statements.
Mpe made it quite clear that former Executive Mayor, Gilbert Kganyago took office on 17 July 2014 and that investments of R60 and R40 million were made with VBS on 18 and 23 December 2015, respectively. This followed after the mayoral committee, chaired by Kganyago, resolved on 26 November 2015 that the investment portfolio be diversified to empower historically marginalised service providers. “In the mayoral committee meeting of 21 April 2016, the mayoral committee appreciated CDM’s participation in supporting black banks. The report was duly considered with appreciation of the diversification of the municipality’s investments to contribute to the transformation of the financial sector by investing with the previously disadvantaged institutions,” Mpe said.
According to Mpe, acting Chief Finance Officer Mariette Venter insisted on recalling the investments at VBS during June 2016. “This became a problem for the mayoral committee,” Mpe stated and added that Venter was suspended briefly during July 2016, the suspension being recalled due to technical reasons.
“Council was then notified about the VBS investments for the first time, as all along it was discussed and concluded at mayoral committee level,” Mpe said, adding that the previous council then resolved that the matter be investigated.
“The new council (under Mpe) was only inaugurated on 26 August 2016. The new council pursued the investigations initiated by the outgone council and then preferred disciplinary proceedings against senior officials implicated in the investigations report. The disciplinary cases have since been concluded,” Mpe confirmed.
Mpe concluded that the current CDM council did all that was required to ensure that the municipality did not suffer any losses. “The African National Congress (ANC) deployed the previous political leadership and has the prerogative to deal with politicians responsible for the decision to invest funds with VBS in contravention of the Municipal Finance Management Act,” Mpe said.

Story & photo: BARRY VILJOEN
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