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VBS Bank scandal: It’s not possible for R2 billion to just disappear, says COGTA Minister

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VBS Bank scandal: It’s not possible for R2 billion to just disappear, says COGTA Minister

Mkhize has emphasised the importance of forensic investigations into affected municipalities before taking action.

The Minister of Cooperative Governance and Traditional Affairs Zweli Mkhize says government intends launching an investigation into the VBS scandal.

He was speaking in parliament were political parties are debating the Reserve Bank’s report into VBS Bank.

Earlier this month, the South African Reserve Bank released a forensic report titled ‘The Great Bank Heist’, authored by Advocate Terry Motau.

VBS came under the spotlight earlier this year, after it was revealed its own management allegedly looted R1.5 billion.

The bank was subsequently placed under curatorship in March this year.

The Reserve Bank has opted not to disclose further details surrounding the forensic report, due to the ongoing investigation.

Several implicated individuals include Brian Shivambu, the brother of Economic Freedom Fighters (EFF) Deputy President Floyd Shivambu and Vhembe district municipality Mayor Florence Radzilani.

“We cannot allow this money to disappear, it’s our people’s money, poor people’s money”, Mkhize said.

Several municipalities illegally injected millions into the bank – money which was intended for infrastructure projects.

The minister has called on the different municipalities to individually seek the funds invested and also stressed that government would not be providing bailouts to the affected municipalities.

“I believe we have to aggressively pursue lawsuits to get as much of this money recovered as possible”

“We cannot allow this money to disappear, it’s our people’s money, poor people’s money”, he said.

Thabo Baloyi
[email protected]

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