MEC Creecy denies responsibility over municipal finances

29 March 2018

It is deeply disturbing that the Gauteng Finance MEC, Barbara Creecy has publicly denied that her Department has a responsibility of oversight over municipal finances.

MEC Creecy revealed this shocking information while responding to my questions in the Gauteng Provincial Legislature this week around the collapse of VBS Bank and the impact that this has on municipalities.

The MEC was asked why the West Rand District Municipality was permitted to invest with VBS Bank, given that it does not meet National Treasury regulation requirements.

The West Rand Municipality invested R81 million with the bank before it was placed under curatorship by the South African Reserve Bank and National Treasury.

MEC Creecy said the municipalities did not have to seek permission from Provincial Treasury before making these investments.

Furthermore, municipalities can make investments in terms of Section 13 of the Municipal Finance Management Act (MFMA) and the Municipal Investment Regulations.

The MEC added that Parliament would be best placed to answer this question put to her.

However, the Ministerial Handbook for MEC’s of Finance clearly states that they do have financial oversight over municipalities.

The DA demands clarity on why and who allowed the municipalities to open investment accounts with VBS Bank.

We will table questions to ascertain why the West Rand Municipality and Merafong Local Municipality invested money with VBS bank, when the MFMA clearly states municipalities need to bank with a registered bank.

Gauteng province is in dire need of Total Change, which can only be brought about by the DA. We will ensure that there is transparency, accountability and the public will be informed about how public funds are spent.

Issued by Adriana Randall, DA Shadow MEC for Finance in Gauteng, 29 March 2018