By Blessing Mabunda
Giyani- Councillor Moses Maluleke has-been appointed as an acting Mayor for Collins Chabane Local Municipality (CCM) after Limpopo premier, Stan Mathabatha on Tuesday fired 7 mayors who deposited more than a billion Rand meant for service delivery in the now liquidated VBS mutual bank.
Amongst the fired municipal mayors is the Greater Giyani municipality (GGM) mayor, Councillor Sasavona Mathebula who invested GGM’s R161m of its R302m operating revenue in VBS.
The newly established Collins Chabane municipality had invested R122m of its R344m operating revenue in VBS.
At least up to 15 municipalities across the country could collapse because they are not likely to recover the billion of rand investments at VBS mutual bank.
An executive member of the SA Local Government Association, said it was “almost a foregone conclusion that some of these municipalities will crash”.
“We are losing sleep over the issue. The money was strictly for operational issues, not reckless investments,” said the official.
Premier Mathabatha fired mayor of Makhado, mayor of Collins Chabane, mayor of Lepelele in Peter Mokaba, mayor of Giyani, mayor of Greater-Feta Kgomo, Vhembe executive mayor who resigned after being fired and mayor of Ephraim Mogale after being implicated by the two forensic investigations.
According to the National Treasury executive it is only a matter of time before some of the municipalities are unable to pay salaries.