DA requests PP to investigate ANC Limpopo deputy chair over VBS
The DA says that lifestyle audits must be conducted for every single person that has been implicated in the VBS scandal.
VBS Bank branding. Picture: Moneyweb
The Democratic Alliance (DA) has requested the office of the Public Protector to probe the executive mayor of Vhembe District Municipality, Florence Radzilani, along with various other mayors of different municipalities who are implicated in the VBS Mutual Bank debacle.
The South African Reserve Bank (Sarb) commissioned report titled The Great Bank Heist, which was released recently, implicated Radzilani who is the deputy chairperson of the ANC in Limpopo.
The DA’s Limpopo premier candidate Jacques Small said: “On numerous occasions, Mayor Radzilani has [never] denied wrongdoing and she is completely oblivious to the harm that she has caused the citizens of Vhembe by illegally investing municipal funds with VBS Mutual Bank. The DA can confirm that Vhembe Municipality deposited more than R800 million into the VBS.”
Smalle said deposits made by the affected municipalities clearly contravenes Section 7(3)(b) of the Municipal Financial Management Act (MFMA), which states that a municipality may not open a bank account with an institution not registered as a bank in terms of the Banks Act 94 of 1990. Furthermore, Section 52 of the MFMA states a mayor of a municipality must provide political guidance of fiscal and financial affairs of the municipality.
“It is clear that every single mayor that allowed funds to be invested in VBS were grossly negligent in their duties and that they should face the music for their illegal actions,” Smalle said.
According to the Great Bank Heist report, Radzilani allegedly received an amount of R300,000 as a “Christmas” bonus and then proceeded to complain that her juniors received R1.5 million and therefore she deserves more money.
“It is unclear as to why the Limpopo Provincial Treasury failed to pick up on any of the illegal deposits made by municipalities which started taking place since 2014. This is a massive indictment on the department and they owe the public answers,” Smalle said.
He said the DA urges the Public Protector, Busisiwe Mkhwebane, to probe the VBS Mutual bank scandal with immediate effect as it is clear that Limpopo Premier, Stan Mathabatha lacks the political will to take action against implicated politicians and mayors like Radzilani.
“It is apparent that the premier is trying to save face and protect failing ANC comrades, as the failing ANC has also been found with their hands in the VBS cookie jar.
“The DA demands that lifestyle audits be conducted in relation to every single person that has been implicated in the VBS scandal.
“Not only should these individuals pay back the money but they should end up in orange overalls.”
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