VBS: DA lays charges of fraud against West Rand District Municipality officials

30 May 2018

Today, along with my colleague, DA Gauteng Shadow MEC for Finance, Adriana Randall MPL, I have laid charges of fraud in terms of Sections 7 (2) and 64 (3) of the Municipal Financial Management Act against officials at the West Rand District Municipality who allegedly made illegal deposits with VBS Mutual Bank.

The West Rand District Municipality is one of 15 municipalities which made deposits with VBS, despite an instruction by National Treasury against this practice. The DA will also be laying charges against officials at the other 14 municipalities who were complicit in these illegal deposits.

These municipalities include:

Vhembe District Municipality

Fetakgomo Greater Tubatse Local Municipality;

Lepelle-Nkumpi Local Municipality;

Limpopo 345 Local Municipality;

Dr Ruth Segomotso Mompati District Municipality;

Mafikeng Local Municipality;

Ephraim Mogale Local Municipality;

Makhado Municipality;

Madibeng Local Municipality;

Merefong Municipality;

West Rand District Municipality;

Elias Motsoaledi Local Municipality; and

Dr JS Moroka Municipality.

Some of the implicated municipalities are among the worst run and most financially unstable municipalities in the country, and with the liquidity crisis at VBS, the municipalities are now at risk of losing their combined R1.5 billion in deposits.

The South African Police Service must prioritise the thorough investigation of these charges and ensure that those who approved these municipal deposits are held accountable.

The DA will not tire in the fight against municipal officials who misappropriate funds meant to better the lives of South Africans, especially the poor.

It is unacceptable that municipal officials, who have a clear mandate to deliver service to the people, abuse their powerful positions and unduly access money which should be used for service delivery.

It is clear that the ANC cannot be trusted with the people’s money. Change will only come under a DA-led government, which will always put the people and their interests first.

Issued by Kevin Mileham, DA Shadow Minister of Cooperative Governance and Traditional Affairs, 30 May 2018