COGTA Minister Zweli Mkhize briefed by 14 municipalities with investment in VBS Mutual Bank
The Minister of Cooperative Governance and Traditional Affairs (CoGTA), Dr Zweli Mkhize today (19 June 2018), met with the Mayors and Municipal Managers of the 14 municipalities which invested funds in the VBS Mutual Bank. The meeting follows the commitment that Minister made during the presentation of his budget vote that CoGTA will engage these municipalities.
The municipalities reported that among themselves, a total of R1,5 billion was deposited into VBS Mutual Bank as part of short-term investment by the 14 municipalities from North West, Limpopo and Gauteng Provinces.
The meeting also discussed in detail nature of these investments. Most importantly, the meeting looked at the possible impact that these investments could have on service delivery. Minister urged provincial CoGTA departments and the affected Municipalities to work on recovery plans to augment possible service delivery disruptions due to the budget shortfall as a result of loss of investment.
Minister Mkhize also urged municipalities to go out to inform the communities they serve about this challenge and the measures in place to mitigate service delivery challenges.
All municipalities are expected to report to CoGTA on the issues around the finances and their impact on service delivery.
Minister Mkhize said that CoGTA will await the various processes including investigations by the South African Reserve Bank which CoGTA supports, and also committed to continue monitoring the situation that is unfolding with regards the investments made to VBS bank.
Issued by the Ministry of Cooperative Governance and Traditional Affairs
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