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VBS Bank fallout claims community scheme officials, results due soon


The results of a forensic investigation into allegations of negligence, dishonestry and dereliction of duty arising from an R80m investment of Community Schemes Ombud Service (CSOS) funds in the failed VBS Bank by Acting Chief Ombud Adv. Seeng Letele and Chief Financial Officer Mr Themba Mabuya are expected later this month or in early November.

“At CSOS it is business as usual under two internal staff appointees: Ms Ndivhuo Rabuli, the current Executive for Governance, Compliance and Enforcement is the Acting Chief Ombud, and current financial manager Mr Nathi Dube, who is the Acting Chief Financial Officer,” said Wanda Lubelwana, CSOS Manager Marketing and Communications.

The forensic investigation will also look into the failure by the two suspended officials to provide relevant information to the CSOS board regarding the investment of surplus funds.

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CSOS fails audit – who’s guarding the guardian?

Human Settlements Minister, Nomaindia Mfeketo, last month suspended Letele over the VBS Bank payment, done without her approval or the approval of the SA Treasury. CSOS is among government entities, including 15 municipalities, to deposit funds with the bank which was placed under curatorship in March. According to media reports, deposits amounting to more than a billion rand are in jeopardy.

Words: Blake Wilkins


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