DA calls on Treasury’s Municipal Finance Recovery Service Unit to directly intervene in Limpopo’s ‘VBS municipalities’
13 October 2019
The Democratic Alliance (DA) will write to the Finance Minister, Tito Mboweni, to activate National Treasury’s Municipal Finance Recovery Service unit (MFRS) to directly intervene in Limpopo municipalities that illegally invested ratepayers money in VBS, to stave off a looming financial collapse.
More than a year ago, details emerged in a forensic report commissioned by the Reserve Bank, that senior ANC officials were paid to use their political influence over dozens of municipalities to invest in what was termed a “pyramid scheme” by the investigators.
To date, not a single person who raided municpal coffers has been arrested or sent to jail.
Following last week’s oversight by Parliament’s Portfolio Committee on Cooperative Governance and Traditional Affairs (COGTA) to the affected municipalities, it became clear that they were struggling to meet their financial obligations, service delivery had come to a complete standstill and they had degenerated into a state of crisis.