Mahikeng joins push for liquidation of VBS

THE Mahikeng Local Municipality has joined forces with the Reserve Bank’s Prudential Authority to apply for the liquidation of VBS Mutual Bank in the Gauteng High Court, Pretoria.

The municipality had initially filed its application in the High Court in Limpopo asking it to force the Mutual Bank to repay R83 million allegedly invested by its suspended municipal manager Thabo Mokwena.

The municipality then changed its application after it turned out the operational jurisdiction of VBS was in Sandton and a court to hear the matter was based in Pretoria.

So, Mahikeng joined the Prudential Authority that had lodged an urgent application on October 29. The matter is due to be heard tomorrow and minority shareholders have already indicated their intention to oppose the application.

Meanwhile, some North West municipalities, implicated in the VBS Mutual Bank scandal, have ignored directives to act against their municipal managers and chief financial officers who invested millions with VBS without council approval.

Now, the North West provincial government under Premier Job Mokgoro is expecting a report from the MEC for Local Government Fenny Gaolaolwe about measures taken by the four municipalities to implement the recommendations of Sekela Xabanisa CA Inc which produced a forensic report and recommended legal action against those involved in the scandal.

Premier spokesperson Vuyisile Ngesi said the provincial monthly cabinet was due to sit before monthend and the VBS scandal was on the agenda.

“The Cabinet will be expecting a report from the MEC for Local Government on measures taken by the four municipalities against officials implicated in the report,” Ngesi said.

The Cabinet would then decide on what action to take against the municipalities that had failed to implement the recommendations of the forensic report.

Only Mahikeng Local Municipality has placed its municipal manager on suspension.

Workers there have for the past two months been been on go-slow, demanding the dismissal of top leadership who invested the R83m with VBS.