LIMPOPO – The Provincial Executive Committee (PEC) of the ANC in Limpopo has dismissed the Mayor of the Thulamela Local Municipality, Avhashoni Tshifhango for his involvement in the municipality’s unlawful investing public funds in the now defunct VBS Mutual Bank.
The Spokesperson for the ANC in Limpopo, Donald Selamolela said the decision to invest funds in VBS was in contrast with the municipality’s own investment policy, which states that “council has the responsibility to invest public funds judiciously”.
According to Selamolela, these investments were carried out despite VBS’s failure to provide the council, with its credit rating report, the mayor failed to monitor and oversee the exercise of responsibilities assigned in terms of the Municipal Finance Management Act and provide diligent leadership in the matter.
A forensic report showed that the municipality had invested R30 million and received interest of just over R682 000.
The decision to dismiss the mayor was taken on the recommendation of the ANC Regional Executive Committee (REC) in the Vhembe region at a Municipal Special Council meeting which was held in June.
Humbulani Molovhedzi, the former Speaker of the municipality was nominated as new mayor for the Thulamela Local Municipality, for the remainder of the current term of office until the municipal election.
Opposition parties welcomed the decision to dismiss the mayor, but said that they were concerned that there were other transgressors that had not been charged.
