VBSHeist: No financial recovery plan for employees and residents who bear the brunt for West Rand Municipality dodgy investment
30 October 2018
The VBS Mutual Bank heist has already cost South Africans dearly and it has now been reported that at least one municipality, the West Rand District Municipality in Gauteng, will not be able to pay salaries this month.
The municipality illegally invested R77 million with VBS despite a directive from National Treasury warning against this practice.
According to the resolution, the Minister and the Municipality reached earlier this year, a financial recovery plan was meant to be developed and implemented, however, the municipality has failed to do this.
This should be a clear trigger to place the municipality under administration in terms of Section 139 of the Constitution of South Africa.