- Vhembe District Municipal CFO Nyiko Machavi threatened to reveal the ‘real’ identities of those behind the VBS looting saga on Tuesday
- A special council sitting which aimed to suspend Machavi was abruptly called-off after Machavi allegedly told the council that he would ‘out’ the real culprits
- Machavi has come under fire for allowing the municipality to illegally invest around R300 million with VBS
Vhembe District Municipal Chief Financial Officer (CFO) Nyiko Machavi threatened to reveal the ‘real’ identities of those behind the R1.89 billion VBS Mutual Bank looting saga on Tuesday afternoon.
A special municipal council sitting which aimed to suspend Machavi was abruptly called-off after Machavi allegedly told the council that he would ‘out’ the real culprits behind the VBS saga. Machavi has come under fire for allowing the Municipality to illegally invest around R300 million with VBS.
Vhembe Municipal spokesperson Ralushai Matodzi confirmed that the special council sitting was scheduled to take place during the course of Tuesday but was suspended indefinitely. Matodzi said he had not been given any additional details and could not give any additional information about the meeting.
Briefly.co.za gathered that sources close to the municipality confirmed that Machavi had given the municipality an ultimatum to either suspend him or to come clean about who really helped VBS’s management to loot the bank.
Local government organisations which include municipalities are legally barred from investing in or using the services of mutual banks.
Vhembe is one of 15 municipalities from Gauteng, Limpopo and North West who invested money with VBS. Citizen.co.za reported that these municipalities invested R1.5 billion with the Limpopo-based bank.
Several other Limpopo municipal CFO’s have already been suspended or resigned from office after the looting scandal broke last week.
Florence Radzilani serves as the mayor of the Vhembe District Municipality, she also serves as the ANC’s deputy provincial chairperson for Limpopo. Radzilani was one of the 53 individuals named in Advocate Terry Motau’s forensic report into the VBS scandal.
The ANC has taken a harsh stance in the matter in an attempt to prove to voters that the party under its new leadership was committed to ethical leadership and would not tolerate criminal activity conducted by its officials.
The provincial executive committee (PEC) ordered all municipalities to take action against those implicated in the VBS matter within a month. The ANC said it would not tolerate criminal or unethical behaviour by ANC members and officials regardless of the leadership position those people might hold.
At least three communities in the province have threatened to embark on mass protests if those implicated in the scandal are not severely dealt with.
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