DA welcomes new Hawks probe into illegal VBS investments

Picture: Supplied

Picture: Supplied

Published Mar 2, 2020


Johannesburg - The Democratic Alliance said on Monday it welcomed news that the Directorate for Priority Crime Investigation (the Hawks) in Pretoria had opened a new case in connection with illegal investments involving the failed VBS bank.

The South African Reserve Bank placed VBS under curatorship in 2018 and released a report showing that about 50 people gratuitously received nearly R1.9 billion from the Limpopo-based institution over a three-year period.

The DA has clashed with fellow opposition party Economic Freedom Fighters over allegations that some of its leaders benefited from funds linked to the collapsed bank.

In May 2018, the DA opened a police case over an irregular investment of R50 million into VBS by the Merafong local municipality.

"The Hawks have informed the DA that they have closed the initial case that was opened and have now opened a new case for further investigation. This indicates the seriousness of this matter," the party said.

It said the municipality's illegal investment had had a negative impact on service delivery, leaving it plagued by protests. Some areas have been without power and water for months, the DA added.

"It is unacceptable for the residents of Merafong to be at the losing end of the stick because of the decision of the ANC-led (African National Congress) government to illegally invest public funds with a mutual bank," said the opposition party.

African News Agency/ANA

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