VBS Fraud Stars Punished

VBS Bank scandal: Seven mayors axed in North West

The African National Congress (ANC) in North West fired seven mayors — four of which are involved in the VBS investment debacle, the provincial task team (PTT) said on Tuesday.

Spokesperson Kabelo Mataboge said Kagisano-Molopo mayor Bitsa Lenkopane, 42, was recalled.

“In the interest of restoring public confidence in the ANC and restoring order, efficient and effective service delivery we have resolved to recall Cde Bitsa Lenkopane as a mayor of Kagisano-Molopo and the new mayoral Candidate is Cde Segomotso Virginia Mere,”  he said.

The mayor of Mamusa, Aaron Motswana, 42, and the mayor of Maquassie-Hills, Victoria Noni Kgabi, 50, were recalled, in an attempt to improve efficient service delivery and restoring public confidence in the ANC.

The mayor of Madibeng, Jostina Mothibe, 45, the mayor of Moretele Andries Monaheng,52, the mayor of Mahikeng Betty Diakanyo, 68, and the mayor of Dr Ruth Segomotsi Mompati District municipality Boitumelo Mahlangu, 59, were recalled with immediate effect following investment in the VBS Bank.

“In furthering our commitment to fight corruption, clean governance the PTT notes the report on VBS and resolve that the affected mayors in Madibeng, Moretele, Mahikeng and Dr Ruth Segomotsi Mompati be recalled with immediate effect. We caution with the utmost restraint the municipalities that participated in this scam to the detriment of service delivery to our people. There must be criminal charges preferred against those involved in this act,” he said.

Madibeng invested R31 million of their conditional grant, Mahikeng R83 million, of which R23 million was from the municipal infrastructure grant while R60 million was from the municipal equitable share (it was an over-payment from the national department of cooperative governance and traditional affairs);

Dr Ruth Segomotsi Mompati district municipality invested R150 million; of which R100 million was from the regional infrastructure grant (RIG), R25 million from the equitable share-free basic services and R25 million was from the building fund.

Moretele local municipality invested R50 million from the 2017/2018 water services infrastructure grant.

The four municipalities have been found to have investment into VBS Mutual Bank contrary to the Municipal Finance Management Act (MFMA) as VBS Mutual Bank was not registered as a bank in terms of the Banks Act.

African News Agency (ANA)

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