Former North West premier Supra Mahumapelo has rubbished claims that he "vigorously encouraged" municipalities in his province to invest R314m with now collapsed VBS Mutual Bank.
According to the report by the Mail & Guardian, Mahumapelo invited VBS to make a presentation at his Bokone Bophirima premier's coordinating council in March 2017.
The council was reportedly attended by MECs, municipal managers, mayors and key government functionaries.
"At no stage did I pronounce that municipalities should use VBS," said Mahumapelo.
He said, although he firmly believed that black people should support any black-owned bank, he had made no such declaration.
"That would be flouting the Public Finance Management Act and the Municipal Finance Management Act. It's our role to get into that space," added the former premier.