The missing R80 million from Community Schemes Ombud Service is with VBS bank

The Community Schemes Ombud Service was established in terms of the Community Schemes Service Act, to regulate the conduct of parties within community schemes and to ensure their good governance.

But lately, the CSOS has been embroiled in allegations of gross negligence and dishonesty after R80 million went missing.

Attorney in Private Practice, Marina Constas explains what happened to the money.

What we know is that the money was placed into a registered bank which is VBS, and is regrettable because the bank is currently under curatorship.

Marina Constas, Attorney in Private Practice

The R80 million is the surplus amount which was placed in VBS account. The difficulty with that is that CSOS is governed by the Public Finance Management Act and there wasn't Treasury regulation approval for that deposit.

Marina Constas, Attorney in Private Practice

VBS is a registered bank so the money hasn't gone missing but the bank as you know has gone under curatorship so the money is sitting there and we will see what will happen to it.

Marina Constas, Attorney in Private Practice

Constas says there has been a forensic investigation launched by the Department of Human Settlement and now they are waiting to see what the outcome of the investigations will be.

She says the Board of the Community Schemes Ombud Service has suspended both its acting chief ombud and Chief Financial Officer following allegations of gross negligence.

To hear the rest of the conversation with Marina Constas, listen below:


Recommended

by NEWSROOM AI
Read More
Thousands displaced after three fires ravaged the Cape over the weekend

Thousands displaced after three fires ravaged the Cape over the weekend

Gift of the Givers' together with the City of Cape Town have stepped in to help those affected by the fire with food and water.

Golden Arrow responds to complaints of how fares and routes are decided

Golden Arrow responds to complaints of how fares and routes are decided

Listeners say they're unhappy that there no direct buses from where they live forcing them to use multiple busses.

[WATCH] Elderly woman racially attacked on airplane

[WATCH] Elderly woman racially attacked on airplane

A video showing a white man hurling racial slurs and swearing at an elderly black woman for sitting next to him has gone viral.

Talking sex: Why male contraception is still a challenge

Talking sex: Why male contraception is still a challenge

The burden of contraception has always been placed women, but a new experimental pill could be a game-changer.

Eyethu Hout Bay Skatepark gets the green light

Eyethu Hout Bay Skatepark gets the green light

CapeTalk's Kieno Kammies brings you an update on how the project has progressed.

How long should you wait for a funeral cover payout?

How long should you wait for a funeral cover payout?

Long-Term Insurance Ombudsman Jennifer Preiss explains some queries they receive with regards to funeral covers and payout times.

Popular articles
[LISTEN] The first 3 steps to access your inner child

[LISTEN] The first 3 steps to access your inner child

In the wellness feature, psychologist Yasmeen Engelbrecht chats about the pre-steps to making contact with your inner child

News24 exposes how big SA corporates are funding fake news

News24 exposes how big SA corporates are funding fake news

A News24 investigation has exposed how some of South Africa's biggest companies have been advertising on fake news websites.

Zondi tells court that she had to 'look happy' in church out of fear for Omotoso

Zondi tells court that she had to 'look happy' in church out of fear for Omotoso

Cheryl Zondi is testifying against Pastor Timothy Omotoso who is accused of rape and human trafficking in his Durban church.

3 emergency numbers you should have on speed dial and how they work

3 emergency numbers you should have on speed dial and how they work

These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.