AG Report: VBS Scandal Haunts Service Delivery In Limpopo’s Cash-strapped Municipalities

ROLIVHUWA SADIKI

INVESTING hundreds of millions of public funds into the VBS Mutual Bank has had an adverse impact on some Limpopo municipalities’ ability to deliver services in the 2018-2019 financial year.

The impact of the R1.2 billion loss following the liquidation of VBS Mutual Bank is still being felt by the municipalities concerned, where service delivery has been affected, said Auditor General (AG) advocate Kimi Makwetu in his Municipal Audit outcomes for the financial year 2018/2019. 

Makwetu also said conditional grants provided for infrastructure development and maintenance were not always used for their intended purposes or were poorly managed.

“The province further reported water losses of R341 million due to poor management and monitoring,” he said. 

During the previous financial year, eight municipalities in Limpopo namely Vhembe district, Fetakgomo Tubatse, Collins Chabane, Makhado, Lepelle-Nkumpi, Greater Giyani, Elias Motsoaledi and Ephraim Mogale suffered a bulk loss of 72% in investments