Municipalities that invested hundreds of millions into the VBS Mutual Bank are now ‘technically insolvent’ and some have had to postpone service delivery projects because they are broke.
This was one of the revelations during a visit by the members of the parliamentary portfolio committee on co-operative governance and traditional affairs who grilled municipal officials implicated in the saga.
“This is a serious matter. That’s why we were given permission [by parliament] to come here,” committee chairperson Faith Muthambi said at the end of a grilling of officials that started on Thursday night and went on well after midnight in Thohoyandou.
The committee was visiting municipalities in the province ‘to ascertain the state of service delivery’ but its major focus was on municipalities that invested in VBS and those that have received repeated disclaimer
audit opinions.
The committee summoned the Mopani, Vhembe, Collins Chabane, Greater Giyani and Makhado
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