Parli hot under collar over VBS

During a four-day oversight visit to municipalities in Limpopo that invested public funds with VBS Mutual Bank, the portfolio committee on Cooperative Governance and Traditional Affairs (Cogta) reportedly discovered that suspended municipal officials who were allegedly involved in decisions to invest large amounts of money with VBS Mutual Bank continue to milk the affected municipalities dry as they have been suspended with full pay.
Upon concluding the oversight visits a week ago, the committee revealed in a statement that municipalities continue to lose money due to the lengthy suspensions of municipal officials. It was learnt that the Elias Motsoaledi Local Municipality spent over R900 000 so far remunerating the suspended municipal manager (MM), who has been sitting at home drawing a salary. It was further reported that the amount includes the acting allowance that the current acting MM is being paid to act in the position.
Committee Chairperson Faith Muthambi was quoted to have said: “What is particularly regrettable is that the R900 000 is not inclusive of the legal fees the municipality continues to pay to deal with the case of the MM. Many municipalities have long completed the disciplinary process with the MM and Chief Financial Officer, but there is seemingly no commitment from the leadership of Elias Motsoaledi Local Municipality to deal with the matter expeditiously. This matter smells of malicious compliance.”
Regarding Fetakgomo-Tubatse Local Municipality, the committee considers it unacceptable that some of the R230 000 000 lost through VBS Mutual Bank as investment is inclusive of R80 000 000 funding for the integrated national electrification programme, which directly impacted on the ability of the municipality to roll out electrification programme. The committee is of the view that going through seven MMs since 2016 is unsustainable and contributes to the weakening of governance within the municipality in question.
The committee went on to report that the Mogalakwena Local Municipality received an unqualified, disclaimer, disclaimer, adverse and adverse audit findings in the previous five financial years respectively.
Regarding the administration of the municipality, the committee is of the considered view that the municipality is dysfunctional and as such is unable to deliver on its basic functions. The municipality has a staggering R2 845 387 223 in unauthorised, irregular, fruitless and wasteful expenditure, it was learnt. The committee also found it questionable that the mayor had given the MM three months of study leave despite the fact that the said official only joined the municipality in April this year.
Muthambi said it was also unacceptable that as a result of VBS Mutual Bank investments, municipalities continue to struggle to pay service providers on time, with some paying suppliers after 150 days. Small and medium enterprises are the lifeblood of the economy and must be protected at all times, she stressed and added that this includes ensuring that they are paid on time for services rendered.

Story: ENDY SENYATSI
>>endy@observer.co.za