The Limpopo government has asked mayors whose municipalities deposited funds with VBS Mutual Bank to ask themselves whether they are still the right people for their jobs.
It says municipalities should now provide plans on how they will provide services in the absence of the money that's been stolen.
Eight municipalities collectively deposited R1.2 billion with VBS Bank which was illegal given that it's a mutual bank.
Limpopo government spokesperson Phuti Seloba says officials who signed off investments with VBS have no space in government.
“They have taken money to VBS, they can’t pay salaries or get an overdraft.”
He says they now have to assess how municipalities will operate.
“Those municipalities that have invested the public funds there, they must tell us what they are going to do in the absence of that money.”
The Fetakgomo Local Municipality has already conceded that it does not have enough funds to pay salaries with other municipalities, citing difficulties in providing basic services.
He says the results of a forensic investigation commissioned by government into VBS will be ready late next month.
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