/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The DA notes with concern media reports that a senior ANC official in Limpopo allegedly advised some municipalities in the province to invest a total of R1.5 billion in the controversial VBS Mutual Bank.

The DA will now call on the Hawks to urgently launch an investigation into these allegations and identify the implicated person who is said to be a member of the provincial executive committee (PEC). We also call on the ANC to come clean on the matter and, in the interest of transparency, name the implicated official.

In Limpopo, the Vhembe District Municipality, for example, is exposed to the amount of R311 million, or 34.57% of their annual operating revenue. The Greater Giyani Local Municipality is exposed to the amount of R158 million, or 52.27% of their annual operating revenue.

This is totally unacceptable and it is why the DA cannot allow our local governments, which have a clear mandate of service delivery, to fail. Other municipalities which invested their funds into VBS include Fetakgomo (R210 million), Lepelle Nkumpi (R151 million), Ellias Motsoaledi (R20 million) and Dr Ruth Segomotse Mompati (R100 million).

What is more shameful is the fact that this member specifically targeted financially stressed municipalities, with weak internal controls and poor municipal governance to attract their deposits.

This member definitely has a case to answer for as this unethical conduct is in contravention of Section 7(3) of the Municipal Financial Management Act.

The DA has previously expressed grave concern about business practices at VBS for and the allegations of fraudulent activity could have serious consequences for these municipalities which have investments with the bank.

The DA trusts that the Hawks will prioritise this matter and ensure that a thorough investigation is speedily concluded.

It is unconscionable that ANC officials play fast and loose with municipal funds, intended for service delivery and the upliftment of residents.

Issued by DA