Press Statement dated 19 December 2018

The Public Servants Association (PSA) is aware that 11 municipalities in Limpopo invested public funds of some R2.6b into VBS Mutual Bank in violation of municipal finance regulations and in disregard of warnings by national treasury.

“While some mayors were dismissed and others voluntary resigned, the PSA is aware that there are still five municipal mayors in offices on the basis that they were able to withdraw the money before the collapse of the bank,” said PSA Limpopo Provincial Manager, John Teffo.

Limpopo Premier, Stan Mathabatha indicated that those will be part of second phase of crackdown. The Premier is on record that the government want to see arrests, successful prosecutions and serious jail terms for all those who violated the law.

The PSA wants to see all those implicated facing the wrath of the law and is concerned that the fired mayors will continue to serve as councilors. The PSA regard this as a slap on the wrist and a mere public relations exercise. The Code of Conduct requires that councilors must perform their duties in good faith (or with a desire to act fairly towards others), honestly, transparently and in the best interests of the municipality which includes the interests of the community.

“It cannot be argued that these councilors did their job honestly and transparently hence the removal as mayors, therefore the PSA calls for the removal of these former mayors as councilors inclusive of the five remaining mayors with immediate effect. The province needs decisive action from the Provincial Government in ensuring that corruption is rooted out of the province and municipalities. Government cannot postpone dealing with corruption and needs to do so immediately,” said Mr Teffo.

Issued by John Teffo, Limpopo Provincial Manager, Public Servants Association (PSA)