2 November 2018 Limpopo Mirror

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SUSPENDED

Mr Mugivhela Rambado.

The knives are out in Vhembe By Kaizer Nengovhela & Anton van Zyl

Mr Nyiko Mchavi.

Miss Ms Tsakani Ngobeni. Photo: Thulamela Municipality website.

Mr Johannes Kanwendo.

During Tuesday’s special council meeting of the Makhado Municipality, the decision was made to suspend the former acting municipal manager, Johannes Kanwendo, provisionally in connection with the VBS investment scandal. A motion to remove the mayor, Cllr Mildred Sinyosi, failed after the councillors were asked to vote on the matter. The Makhado Municipality came under a lot of pressure the past months to act against officials and councillors responsible for investing R155 million since 2016 in the mutual bank. When the bank was placed under curatorship earlier this year, the outstanding balance owed to the municipality stood at just over R62 million. Last week, the ANC’s integrity commission recommended that all its members implicated in the looting of the bank should step aside while the investigations were continuing. Even the ANC Youth League in Limpopo released a statement saying that the mayors of municipalities that had invested in VBS should resign. None of this was on the cards during Tuesday’s council meeting and the scapegoats were seemingly to be found among the officials authorising the transactions. This can prove to be slightly problematic, seeing that the first investment (R15 million) was made in mid-2016. In 2017, three further investments were made, totalling R140 million. During this period,

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the chief financial officer (CFO) was Mikateko Palesa Makhubela. She resigned early in 2018 to take up a position at the Greater Tzaneen Municipality, where she is still the CFO. Currently, the acting CFO at Makhado is Godfrey Raliphada. In December last year, Freddy Tshivhengwa was appointed as municipal manager (MM). His appointment followed a prolonged period of uncertainty, after Sakkie Mutshinyali was suspended. Mutshinyali vacated his office at the end of 2016, when the situation apparently became unbearable. He later argued that he was the victim of a campaign by the newly appointed mayor to get rid of him. Before Tshivengwa’s appointment, different officials acted as MM. On 17 October 2017, Chris Kharidzha was listed, but for most of 2017, Johannes Kanwendo’s name appeared next to the title of acting MM. The question as to who had signed off on the investments is rather important. The municipality’s investment policy prescribes that municipal funds must be invested in more than one institution, to limit risks. The CFO must obtain three quotations. The MM is accountable for all transactions entered into by his or her designates. The day-to-day handling of the investments is the responsibility of the CFO. Based on documents that became available, VBS Mutual offered the municipality a much higher interest rate than the commercial banks. - Continues on page 2

Rambado and Mchavi suspended with full pay By Ndivhuwo Musetha The council of Vhembe District Municipality (VDM) has taken a decision to suspend its two senior officials, Mugivhela Rambado and Nyiko Mchavi. The decision to suspend the two was taken on Tuesday afternoon during a council sitting held at the council chamber in the municipal offices in Thohoyandou. The suspension with full pay follows the notice of intention to suspend that was given to the two a week ago. Rambado and Mchavi are accused of being responsible for the R300 million investment at VBS, which was against the law. The investment was also done against Treasury’s advice. The spokesperson for the municipality, Mr Matodzi Ralushai, confirmed the suspension. “The suspension will lapse after three months, end of January next year. A decision will be taken after three months, based on the findings of investigations.” Meanwhile, a vote of no confidence against the executive mayor, Cllr Florence Radzilani, which was brought by the EFF, failed on the same

day. An EFF member in Vhembe, Cllr Patrick Mashau, brought the motion to Speaker Fridah Nkondo, basing his arguments on the VBS report that implicates Radzilani and other people in the looting of the bank’s money. The motion, which Nkondo said was based of unfounded allegations, was supported by the DA. It failed, however, as the 27 ANC councillors voted against the motion, with eight members from opposition parties voting for it. Radzilani was not available during the sitting. Cllr Rudzani Ludere acted in her position as executive mayor. The suspension of the two officers comes hardly 24 hours after the ANC’s Integrity Committee has recommended to the national executive committee of the ANC that members of the party implicated in the VBS saga should be directed to step aside from all leadership positions and activities of the ANC. * In the meantime, the Collins Chabane municipality in Malamulele has also reportedly put two officials on suspension. They are the chief financial officer, Mr Eddy Makamu, and the municipal manager, Ms Tsakani Ngobeni.


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