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
Why rooibos tea price remains high despite improved rains

Why rooibos tea price remains high despite improved rains

MD at Rooibos Ltd, Martin Bergh explains the current high price of Rooibos tea.

A march to highlight lack of street lights in townships set for Khayelitsha

A march to highlight lack of street lights in townships set for Khayelitsha

The Night March has been organised to highlight the lack of adequate street lighting in townships across Cape Town.

Capetonians have your say! City's draft water strategy is up for public comment

Capetonians have your say! City's draft water strategy is up for public comment

According to Mayco member Xanthea Limberg, the draft policy is open for public comments and recommendations until 15 March.

There's a lion on the loose in Beaufort West, warns SANParks

There's a lion on the loose in Beaufort West, warns SANParks

SANParks spokesperson, Reynold Thakuli says people should not stop to take pictures when they spot the lion but alert authorities.

Calitzdorp parents shut school gates due to excessive overcrowding

Calitzdorp parents shut school gates due to excessive overcrowding

Parents and SGB refuse to open the Excelsior Primary School until the WCED deals with the overcrowding and lack of teachers.

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
How to help your pets who suffer from noise phobia ahead of Armed Forces Day

How to help your pets who suffer from noise phobia ahead of Armed Forces Day

The Armed Forces Day celebrations could be potentially rough for your furry pet friends. Here's some expert advice from a vet.

Wife killer Jason Rohde described as 'upstanding man' at sentencing proceedings

Wife killer Jason Rohde described as 'upstanding man' at sentencing proceedings

Last November, Rohde was found guilty of killing his spouse Susan Rohde at the Spier Wine Estate in July 2016.

Traffic congestion: Capetonians spending 75% more time in vehicles

Traffic congestion: Capetonians spending 75% more time in vehicles

Cape Town has the worst congestion levels in the whole of South Africa.

DStv subscription price hikes for 2019

DStv subscription price hikes for 2019

MultiChoice will increase the prices of certain DStv packages from 1 April.

'Bring back skilled engineers to Eskom' - Solidarity

'Bring back skilled engineers to Eskom' - Solidarity

Trade Union Solidarity says it supports Pravin Gordhan's idea that technicians who used to work for Eskom should be brought back.

Criminals targeting homes with aluminium windows, warns neighborhood watch

Criminals targeting homes with aluminium windows, warns neighborhood watch

The Panorama, Welgelegen and Plattekloof Neighbourhood Watch has identified a new house break-in trend.