Co-operative Governance and Traditional Affairs Minister Zweli Mkhize says he expects to see consequences for those found to have deposited municipal funds into VBS Mutual Bank.
He told SABC News that his department has also initiated its own investigation.
The Municipal Finance Management Act (MFMA) forbids municipalities from investing in a mutual bank.
Mkhize says he’s cooperating with all law enforcement agencies tasked with investigating the issues.
He says: “We are determined to get to the bottom of the problem of VBS. We want to know who authorised the funds to be transferred. The Treasury and Cogta will take the investigations forward.”
“We are also aware of the forensic audit, we will corporate until we get to the bottom of this issue,” adds Mkhize.