‘ANC won’t rescue VBS Bank’

COOPERATIVE Governance Minister Zweli Mkhize has denied the ANC plans to rescue VBS Mutual Bank.

Mkhize told the National Council of Provinces yesterday investigations were under way by the SA Reserve Bank and the Special Investigating Unit into the alleged gross corruption at the bank, and that they (ANC) would allow those processes to take their course.

He said the ANC has not had any discussions about rescuing the bank. This followed reports that the ANC’s Top Six leaders had met with leaders from Limpopo to turn the bank into a provincial government bank.

Mkhize told MPs there were various investigations into the bank and they will not interfere with it.

He said they would also take action against officials and mayors involved in any wrongdoing, once these reports had concluded there had been illegal conduct.

The bank is under curatorship and was found by the SA Reserve Bank (Sarb) to have squandered hundreds of millions of rand.

Wrongdoers will be brought to book – Mkhize

Mkhize said several municipalities in Limpopo, Gauteng and North West had deposited a total of R1.65 billion into the bank, before it went bust.

However, he denied the governing party was planning to rescue the bank.

“The ANC will not deviate from the process by Sarb and the rest of the investigations. There is no plan by the ANC to rescue anybody here…”

Those who had abused the funds of ordinary South Africans must be punished, Mkhize said.

He added that they did not have time-frames by when provincial MECs for treasuries must report to his department on the progress made in their investigations.

“The time-frame for us is that we get the reports every month from the MECs. We are going to put pressure on them to make the information available to us,” he said.

Mkhize said he would not know how soon the SIU and Sarb will finalise their own investigations into the bank.

“When it comes to Sarb and the SIU, we do not have the ability to ask for time-frames.”

He said they would support processes to recover the money from people implicated in wrongdoing.

He said he has met with MECs regarding the work that is being done by the provinces.

In Giyani, a senior official has also been suspended in relation to this matter, he added.

Mkhize said where there was evidence of wrongdoing, there must be action against the implicated parties and individuals.

“Where there is clear evidence of culpability, action will be taken, whether it is the mayor or the municipal manager,” Mkhize added.

When the money was deposited by municipalities some of the decisions were not taken by mayors or municipal managers, but people in positions below that of the chief financial officer.