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Limpopo municipality receives R22 million from VBS Bank liquidators
The Vhembe district municipality invested R300 million with the bank.
Clients visit a branch of VBS Mutual Bank on March 12, 2018 in Thohoyandou, South Africa. Picture: Gallo Images / Sowetan / Antonio Muchave
A district municipality in Limpopo, ravaged by poverty, has received a token payment of R22 million from the VBS Mutual Bank liquidators.
The Vhembe district invested R300 million with the bank.
“We can confirm that we have, indeed, received money from the liquidator, said municipal spokesperson Matodzi Ralushai.
“We received R22 million on 4 February and are still waiting for more from the R300 million we invested. “We are going to spend the money on service delivery in order to improve the lives of our people.”
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The assassination of two leaders of the South African Municipal Workers’ Union (Samwu), Roland Mani and Timson Musetsho, in 2019 was believed to be linked to their raising the illegal investment with the now defunct bank.
At the time, the union brought the municipality to a standstill, seeking justice for the two men.
During their burial service, then second deputy general secretary of the South African Communist Party (SACP) Solly Mapaila said the union could not allow its comrades to be murdered and demanded immediate action.
Five arrests have been made in connection with the murders.
This week, the liquidator confirmed several municipalities in Limpopo, North West and Gauteng had started to receive some of the money they had illegally invested with the bank.
Individuals who invested more than R100,000 also started receiving their money.
About R160 million has been recovered and set aside to repay entities and individuals whose investments were looted by the controversial bank, according to the liquidator.
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VBS liquidator Anoosh Rooplal told the SABC the Vhembe municipality was among 13 councils to receive payments.
“To date, our collection efforts has resulted into an amount of R159 million being available for distribution to all concurrent creditors,” Rooplal said.
“These are effectively creditors who have lodged valid claims with the bank.
“A first dividend of seven cents of the rand is being paid to retail depositors – 13 out of the 14 municipalities, who had invested in VBS and who have submitted valid claims, are also being paid seven cents in the rand.”
A Jubilant Thohoyandou resident, Freeman Tshifhango, said yesterday: “We are happy that part of the money is returned.
“We hope all the R300 million is returned. We have learnt our lesson and hope under the capable hands of the new municipal manager and her chief financial officer, history will not repeat itself.”
