Conference woes for ANC in Limpopo

Union wants answers from premier on ‘dodgy’ VBS bank investments.

The South African Municipal Workers Union (Samwu) in Limpopo wants ANC provincial chairperson Stan Mathabatha to come clean about contentious investments made by municipalities in VBS Mutual Bank (VBS) before the party’s conference this weekend.

The ANC in Limpopo will hold its elective conference on Friday but it may be marred by controversy.

Samwu, which represents workers in the province’s 27 municipalities, accuses Mathabatha of being tight-lipped about the investments into the bank, while two regions, Waterberg and Peter Mokaba, threatened to interdict the conference.

The union said in an open letter that Mathabatha, also the province’s premier, dodged the matter since the National Treasury revealed the investment with the controversial bank was “toxic”.

Samwu provincial chairperson Sello Manyama said it was a shame the union’s meeting with cooperative governance MEC Jerry Ndou about the matter yielded nothing. “Our municipalities are collapsing. They are unable to discharge their full potential in service delivery issues because the investment has rendered them penniless.

“This is not a war, but we believe the premier and his MECs cannot watch from the fence when their municipalities collapse.

“They must explain how they plan to redeem the affected municipalities from drowning in debt,” said Manyama.

Municipalities reported to have invested in VBS include Fetakgomo with R210 million; Lepelle Nkumpi (R151 million); LIM 345 (R122 million); Ephraim-Mogale (R82 million); and Dr Ruth Segomotse Mompati (R100 million).

The Vhembe District Municipality, for example, invested 57% of their operating budget, which amounts to R311 million, while the Greater Giyani Local Municipality invested R158 million or 52.27% of its annual operating revenue.

The municipalities have invested a reported combined R1.5 billion in VBS, against Treasury’s advice.

The call by Samwu has opened a can of worms for Mathabatha, who hopes to get re-elected for a second term as chairperson.

Peter Mokaba and Waterberg threatened to interdict the conference, following allegations that they were not in good standing. The threat was, however, quelled by a member of the national executive committee (NEC), Thoko Didiza, who pleaded with the regions to withdraw, since the Peter Mokaba and Waterberg were put under the control of a regional task team structure.

Yesterday, ANC provincial spokesperson Aluwani Netsianda said the conference would continue despite the threats.

“The contentious matter by Samwu is currently receiving attention from the government. We are equally disturbed by the investment saga. But as for the postponement of the conference, the allegations do not hold water,” said Netsianda.

Mathabatha’s spokesperson, Kenny Mathiba, said the premier has instructed the provincial treasury to conduct forensic audits in the municipalities that invested with VBS Mutual Bank. He said the audit would start in the next two weeks and last for six months.

“What we can promise you is that heads are going to roll here. Several municipal managers that we questioned said they invested without the approval of their municipal mayors or Treasury. We want to know who instructed them to invest and why,” said Mathiba.

Mathiba said Mathabatha was concerned about the investments in VBS.

“He is very worried and needs results as soon as yesterday.”