Auditor-General Kimi Makwetu announced on Wednesday that service delivery in around 16 municipal areas of Limpopo and Gauteng would be affected for a long time due to their investment in VBS Mutual Bank.
During the delivery of his 2017/2018 local government audit results, Makwetu said that eight municipalities in Limpopo and two in Gauteng had invested funds which were earmarked for long-term projects in VBS Bank.
The VBS Mutual Bank incident has been called The Great Bank Heist since it has been found that R1.6-billion was stolen over a period of three years mostly by executives and politicians.
Makwetu has stressed the all municipalities in the Free State require urgent intervention as they lack good leadership and have suffered financially due to their instability.
The Citizen reported that 79% of municipalities in the province have ignored Makwetu’s suggestions and there has been a significant decline in service delivery.
Matjhabeng municipality, which includes Welkom, is said to be unable to pay all their staff this month due to the lack of funds. This municipality, along with Maluti-A-Phofung, Matjhabeng and Metsimaholo municipalities have given no consideration to development and maintenance of infrastructure, said Makwetu.