News / South Africa / Politics

News24 Wire
Wire Service
2 minute read
9 Aug 2020
5:07 pm

ANC in Gauteng calls for Merafong mayor and MP to resign over VBS saga

News24 Wire

The party says although its PIC couldn't establish if the two mayors were involved in any acts of corruption, they should be held accountable.

A closed VBS Mutual Bank branch, 9 July 2018. Picture: Facebook

The ANC in Gauteng has called for Merafong Mayor Maphefo Mogale-Letsie and former West Rand District Municipality mayor Boyce Maneli, who is now an MP and chairperson of the communications committee, to step down from their roles for failing to act against officials involved in the collapse of VBS Mutual Bank.

On Sunday, Gauteng ANC secretary Jacob Khawe announced the two would now be expected to resign from their roles after the Gauteng provincial executive committee (PEC) decided to adopt recommendations made by its Integrity Committee.

“Although the PIC [Provincial Integrity Committee] said they couldn’t establish if the two mayors were involved in any acts of corruption, they should be held accountable for failing to take action against officials and accordingly should step down from the positions which they are elected,” Khawe said.

He added the PEC had deliberated over the matter and decided to accept the recommendations.

Last year, the ANC in the West Rand exonerated the two of any wrongdoing after it emerged the two municipalities were among several which invested millions of rand in the now defunct bank.

According to a report called The Great Bank Heist by advocate Terry Motau, the West Rand District Municipality invested R81 million, while Merafong invested R50 million.

Nearly R2 billion was looted from the bank.

“We were dealing with the matter of political accountability and in this respect we hold the mayors accountable, even the laws of local government from the structures act, to municipal act does hold executive mayors accountable,” said Khawe.

He added the ruling by the PIC spoke to the oversight responsibilities the two had over their respective executives, saying failure to do so called for the party to act.

Khawe also announced the PIC had cleared City of Johannesburg Mayor Geoff Makhubo of any impropriety and conflict of interest in relation to his company doing business with a firm which had been a service provider for the City.

There had been questions about his company, Molelwane Consulting, receiving R30 million from Regiments Capital.

News24 previously reported Makhubo would have subject himself to the ANC’s Integrity Committee in December 2018 just as he rose to the position of mayor after being elected in the council to replace Herman Mashaba who resigned in October 2018.

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