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VBS scandal: Makhado municipal officials face DA motion of no confidence

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VBS scandal: Makhado municipal officials face DA motion of no confidence

VBS scandal: Makhado municipal officials face DA motion of no confidence

30th October 2018

By: News24Wire

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Two top Limpopo municipal officials could be shown the door on Tuesday for allegedly investing R63-million with VBS Mutual Bank without following proper procedures.

Makhado Municipality mayor Mildred Sinyosi and municipal manager Johannes Kandwendo may be left without jobs on Tuesday afternoon when a motion of no confidence is debated in a special council meeting at 14:00.

The DA brought the motion of no confidence because the party believes the two played a role in the misappropriation of funds by allegedly investing in VBS without approval.

"Ratepayers' money was 'invested' without following proper procedure as laid out in [the] Municipal Finance Management Act and National Treasury regulations," the DA's Geoffrey Tshibvumo said.

A week ago, the chief financial officer of the Giyani Municipality, Hitler Maluleke, was dismissed over an investment of almost R160-million in VBS Mutual Bank.

Maluleke is the former CFO of the Makhado Municipality.

"Part of the reason for his dismissal is that he was directly involved in the infamous VBS investment scandal and he is also accused of having authorised [payment] for some projects that were not done," municipal spokesperson Steven Mabunda said.

A forensic investigation was instituted into the payments, which were discovered by a newly appointed municipal manager.

Maluleke was dismissed after a disciplinary hearing.

Mabunda said the R160-million invested in VBS might have been lost forever: "It might not come back."

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