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:


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