DA calls for suspension of Madibeng officials involved in fraudulent debit orders and irregular VBS investment

The Democratic Alliance (DA) in Madibeng has called for the suspension of Madibeng officials that were involved in fraudulent municipal debit orders revealed in the recent Auditor-General’s report, as well as those involved with the irregular VBS Mutual Bank investment.

“The DA has written to the Acting Municipal Manager, Neo Maape, following the Auditor-General’s damning report on the Madibeng Local Municipality. Madibeng’s financial situation has worsened in the previous year after it invested R31.5 million in the VBS Mutual Bank. The previous municipal manager and chief financial officer resigned in December 2018. However, no further action has been taken against them, it is pending the finalisation of the investigation,” said DA councillor, Eugene van der Schyff.

“The 2017/2018 audit also identified unauthorised debit orders for private individuals’ accounts and purchases that were made against the municipality’s bank account. These transactions have been reported to the acting municipal manager and executive mayor for them to act and prevent further losses by putting stronger access controls to the municipality’s accounts. Despite making these recommendations and reporting this to the Municipal Public Accounts Committee (MPAC) no investigation or action has been taken to stop these transactions or to recover the money from the responsible individuals.”

The DA said these transactions further prove that the municipality is failing to implement financial controls over public funds which will further hinder the municipality from delivering services to the community.

“All officials and politicians involved in the VBS saga and unauthorised debit orders must be suspended and face criminal charges for fraud and corruption. Public money must be used to provide and improve services.”