Mkhize: Don’t drag me into VBS investigation
Minister of Co-Operative Governance and Traditional Affairs,
Zweli Mkhize, has denied allegations that he advised municipalities to invest
in the now bankrupt VBS Mutual Bank.
Mkhize released a statement on Saturday afternoon, hitting back at UDM leader Bantu Holomisa for alleging that Mkhize had given the approval for the municipalities in Limpopo, Gauteng and Mpumalanga to invest over R1.5 billion in the bank.
According to Mkhize he first read about these investments when it was reported in the media.
“I want to state clearly with no form of hesitation, that when I was Treasurer-General of the ANC, various companies, both listed and unlisted, big and small business, requested meetings with me. They presented their business plans to me, their future plans and various areas of interest. My role was mainly to engage them on ANC policies with regards to growing the economy, job creation and the role their businesses can play in transforming the economy.”
However, Mkhize says he did meet with VBS once in 2016 when he was invited to the bank’s offices in his capacity as Treasurer General of the ANC.
“They introduced themselves and their business to me without seeking a single favour from me. In fact at the time I commended them for playing a role in the realization of a black bank in South Africa.They themselves did not even request me to arrange any meetings or do anything on their behalf except to present their business model and strategy.”
He says he never had any other engagement with the bank after this meeting.
Mkhize says he fully supports the investigation by government, as well as the processes underway by the SA Reserve Bank, the office of the Auditor-General and the SAPS. He adds that he also assigned senior officials from his Department to work with those from the AG and National Treasury as part of the investigations.
“I met with the Mayors and senior officials of the affected municipalities in Pretoria on the 19th of June and the following was agreed to as actions to be taken:
• Provincial CoGTA departments and the affected municipalities would work on recovery plans to augment possible service delivery disruptions due to possible loss of investment.
• Municipalities would fully disclose the VBS investment on their financial books and also inform their communities about the measures in place to mitigate service delivery challenges.
• All involved municipalities would report to CoGTA on actions taken against officials who have transgressed the law.”
Mkhize calls on Holomisa to share any information he has with authorities investigating the matter.