The Limpopo provincial government has given the thumbs up to municipal councils that have suspended or dismissed officials responsible for investing millions of rand with the almost defunct VBS Mutual Bank.

Economic Development and Environmental Affairs MEC Seaparo Sekoati told the media on Thursday, that the provincial cabinet supported the municipalities taking action against its officials involved in the VBS scandal.

"EXCO (executive council) supports the actions being taken by municipalities. But we believe COGHSTA (Cooperative Governance, Human Settlement and Traditional Affairs) will make sure that there are no further adverse effects brought by the VBS saga at the affected municipalities.

"As provincial government, we are concerned about those municipalities that invested money with VBS, hence we asked the Treasury and COGHSTA to investigate," Sekoati said.

The provincial report into the VBS scandal is expected to be released by the end of November.

Found guilty

The Giyani Municipality has since dismissed its chief financial officer, Hitler Maluleke, after a disciplinary hearing into his involvement in the VBS saga. He was also found guilty of authorising payments for projects that were never done.

Last week, the Makhado municipal council passed a resolution to suspend and haul its former acting municipal manager, Johannes Kandwendo, before a disciplinary committee. He is now director of community services at the same municipality.

This was after a motion of no confidence was brought by the Democratic Alliance (DA).

However, the African National Congress (ANC) voted against the motion of no confidence in Mayor Mildrat Sinyosi, who is also accused of involvement in the VBS scandal.

The DA has since lambasted the ANC for opposing the motion against officials in affected municipalities, such as Vhembe, whose mayor and ANC provincial deputy chairperson, Florence Radzilani.

She is seriously implicated in the VBS scandal.