The African National Congress (ANC) in Limpopo says out of the 12 municipalities which invested in the controversial VBS Mutual Bank only five were able to recover their funds and the other seven lost their investments.
The party has admitted that it’s made grave mistakes in its deployment of its members at local government level.
It says it will continue to monitor how its officials implement recommendations made by the auditors involved in investigating VBS Bank.
Seven mayors involved in the saga were sacked on Tuesday.
ANC Limpopo secretary Soviet Lekganyane says several municipalities passed policies which did not comply with the Municipal Financial Management Act.
Lekganyane says it was because of these wrongful policies that were passed that municipalities were involved in irregular investments.
“The National Treasury wrote letters to municipalities in the second half of last year. The investments which were made with VBS were wrongful and that municipalities should withdraw.”
He says even the municipalities which did get their money back still need to account for the investments made.
“We’ll continue to monitor our employees in government.”
At the same time, Vhembe Mayor Florence Radzilani also resigned with immediate effect.
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