Cape Town - President Cyril Ramaphosa has instructed the Special Investigating Unit (SIU) to probe allegations of corruption at the Moretele local municipality in North West province, dating as far back as January 2016.

The municipality is embroiled in allegations of serious maladministration after revelations that it contravened National Treasury regulations by diverting R50 million from a grant meant for water infrastructure in the 2017/18 budget to bank it with the liquidated VBS Mutual Bank.

Moretele mayor Andries Monaheng and six other mayors in North West were recalled with immediate effect by the governing African National Congress in December following the irregular investment of municipal coffers in VBS.

In September angry members of the public in Moretele asset alight a municipal hall and the guard house during a violent service delivery protest.

In a proclamation published in the Government Gazette, Ramaphosa said the SIU would probe, among others, the unlawful appropriation or expenditure of public money and the intentional or negligent loss of public money.