The DA is urging Limpopo MEC for Treasury, Seaparo Sekoati to review Lepelle-Nkumpi Municipality’s R110 million investment whilst more than eight community projects have been abandoned and cannot be completed due to lack of funds. We also demand that these abandoned projects be investigated to determine why they were not completed.
The decision to invest R110 million with a registered bank was taken during a council meeting yesterday which the DA vehemently rejected considering the missing R153,3 million which was invested into the liquidated VBS Mutual Bank.
The controversial VBS investment violated the Municipal Investment Regulations which regulates the instruments within which municipalities are allowed to invest municipal funds.
Furthermore , the Provincial Treasury failed dismally to execute their executive role to monitor and intervene before public money was wrongfully invested against treasury regulations in VBS mutual bank which affected several community projects which have been placed on hold.
The current investment which is regarded as a surplus will be invested on a short term period for 30 , 60 and 90 days period respectively.
With no monitoring system in place, the DA believes that the money could have been use to finish the following community projects which have been abandoned due to VBS debacle:
- Waste transfer stations in Ga Mphahlele , Moletlene and Mathabatha/Mafefe estimated to worth R1.5 million each (R4.5 million in total)
- Magatle Community Hall – R12 million
- Tarring of internal streets in Zone S to phase 2 in ward 16 and 17 – R25 million
- Upgrading of gravel to tar of Maijane / Makaung / Makaepea access road – R 7 million
- Upgrading of Mooiplaas access road from gravel to paving blocks – R 12 million
- Rakgoatha storm water drainage – R 6 million
- Construction of Maralaleng Community Hall – R 3 Million
The DA is deeply concerned that no steps or disciplinary actions have been taken against the officials implicated for unlawfully doing business with VBS bank.
It is clear that there is no accountability for illegal actions by officials and that there is no thorough monitoring in relation to community projects in the Municipality.
We urge MEC Sekoati to probe the matter with the necessary urgency as residents cannot continue to suffer due to the Municipality’s involvement in the VBS scandal.