The ANC in the North West's provincial task team (PTT) decided to recall, with immediate effect six of its mayors in the province, including four who had invested money from their municipalities in the collapsed VBS Mutual Bank.
It emerged that several North West municipalities including, Madibeng, Moretele, Mahikeng and Dr Ruth Segomotsi Mompati invested R314m in the defunct bank.
The PTT's spokesperson Kabelo Mataboge confirmed to News24 that a decision to recall all six mayors was taken during a meeting held on Monday, with two other mayors from Mauassie-Hills and Mamusa being axed over "governance issues".
The four municipalities were implicated in a damning report by Advocate Terry Motau titled the "Great Bank Heist" that found that over 50 individuals and companies looted almost R2bn from the VBS bank.
"We caution with the utmost restraint the municipalities that participated in this scam to the detriment of service delivery to our people," said the PTT's provincial co-ordinator Keneetswe Mosenogi in a statement.
"There must be criminal charges preferred against those involved in this act," continued Mosenogi.
The PTT also urged Job Mokgoro, who took over as premier of the North West from Supra Mahumapelo in May, to consider reshuffling his executive.
Mahumapelo and some of his supporters are currently fighting the PTT, after he rejected an appointment into an interim structure. They have accused the task team of "purging" those who did not support President Cyril Ramaphosa's bid to become leader of the ANC in the 2017 national elective conference.
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Two matters relating to changes in the party in the North West have both been struck off the roll in the South Gauteng High court in Johannesburg for lack of urgency.
However, Mahumapelo vowed not to give up the fight nor leave the ANC, as he believed he was raising a critical issue.
He has also been accused of encouraging municipalities in the platinum rich province to invest in VBS, which he has denied.