Madibeng municipality, along with 14 other municipalities that have invested in the VBS bank, must implement the Public Protector’s remedial actions within 90 days, Busisiwe Mkhwebane said during a virtual media briefing on 30 June.
This includes the disciplinary actions against municipal officials and councillors involved in the investment.
The Public Protector said Madibeng invested R60 million in the VBS bank, of which R30 million was paid back. She said the investments were made in violation of the Municipal Financial Management Act (MFMA), and that the conduct of municipalities was improper and constitutes maladministration.
Mkhwebane discussed the findings of the investigation into the 15 municipalities’ VBS investments and ordered that to remedy these improper actions and maladministration, her prescribed actions must be taken within 90 days, as well as the implementation of any outstanding recommendations by the forensic investigation reports.
The actions include officials attending workshops on the provisions of the MFMA, the submission of quarterly reports to the council on investments made, and ensuring that Internal Audit Units conducts compliance audits and report to the council.
Municipal managers will have to ensure that these are implemented and speakers of the municipalities must submit quarterly progress reports to the provincial MECs of the Department of Cooperative Governance and Traditional Affairs (Cogta), as well as Treasury.
She said public funds, supposed to be used for service delivery were irregularly used to invest in the VBS bank.