Makhanda ruling spurs group to tackle Gauteng VBS councils

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Makhanda ruling spurs group to tackle Gauteng VBS councils
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The #Ma-Afrika party wants the high court to dissolve the Merafong and West Rand municipalities for illegally depositing funds with VBS Mutual Bank

VBS Mutual Bank is now being liquidated. An investigation revealed a R2bn fraud allegedly perpetrated by the directors, politicians and auditors.Picture: ANTONIO MUCHAVE/SOWETAN

Despite Treasury regulations forbidding deposits into mutual banks, Merafong had deposited about R50m, while the West Rand district municipality deposited about R46m. It referred in its application to the precedent-setting judgment on the municipal council of Makhanda, formerly Grahamstown.

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