Gauteng government must explain VBS Bank’s squandering of municipal funds
25 June 2018
The Gauteng government will have to explain to the public why the West Rand District Municipality (Randfontein, Westonaria) and the Merafong City Municipality (Carletonville, Fochville) invested amounts of R50 million each, that is a total of R100 million, in VBS Mutual Bank.
Over the weekend, a dooming report about VBS that was recently put under curatorship by the Reserve Bank because it did not comply with the necessary liquidity requirements was released by the media.
According to media reports, the bank’s collapse paralysed numerous municipalities after municipal funds amounting to R1,5 billion was lost.
The FF Plus wants to know why the Merafong and West Rand Municipalities invested their funds in VBS and what exactly the objectives were with these investments. The provincial government must have put a stop to the transactions.