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Municipalities Recover Fraction Of Money Lost In VBS Scandal

Municipalities Recover Fraction Of Money Lost In VBS Scandal.  Some of the municipalities that illegally invested millions of rand in public funds with VBS Mutual Bank have revealed that they have only received a fraction of their money from the curators.
Municipalities Recover Fraction Of Money Lost In VBS Scandal

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The process of winding up the estate of the defunct bank entered another phase after successful payments to 550 creditors who include 13 municipalities.

The Fetakgomo Tubatse local municipality in Limpopo, which invested more than R230m of public funds confirmed that it had received R16m from the curators.

Municipal spokesperson Thabiso Mokoena said since the irregular VBS investment came to light, the mayor had been recalled and employees implicated, including the former municipal manager and CFO, resigned. The investment resulted in the loss of more than R230m of public funds.

“The provincial government intervened in the matter and our mayor was recalled for that. Secondly, the officials who were involved, most left the employ of the municipality. At the moment we don’t have anyone who was involved in VBS still working for the municipality.

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“Two of the implicated officials were arrested and appeared in court,” he said.

This week residents of Maapea Mpheti village in the municipality protested about the slow pace of electrification in their area and the council’s failure to supply water.

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