Merafong residents demand answers about VBS investments

June 14, 2018

by Adriana Randall MPL – DA Shadow MEC for Finance

Today the DA held a successful picket outside the Merafong Municipality over the municipality’s illegal investment of R50 million with VBS Mutual Bank.

See pictures here, here and here.

A memorandum was handed over on behalf of the residents to an official in Mayor Maphefo Letsie’s office demanding the following:

  • An explanation as to how the R50 million invested with the VBS Mutual Bank will be recovered;
    • An investigation to determine why this investment was made was made in the first place; and
    • That the executives, including those officials involved in making this investment, face disciplinary action.

Earlier this year VBS Mutual Bank was put under curatorship by the South African Reserve Bank (SARB) and National Treasury.

As a result, for the coming financial year, the ANC in Merafong will have to present an unfunded budget.

This means that they will try to provide services and programmes with money they do not have to spend.

For months the DA has been warning that this lack of fiscal management would have a negative impact on the day-to day running of the municipality and leave residents in the lurch.

The DA has requested that the Mayor, provides a response to the issues tabled within 14 days.

It is clear the only the DA can bring about the Change that Gauteng deserves. Come 2019, we will put the residents of Merafong first.

Leave a reply

Your email address will not be published. Required fields are marked *