VBS Mutual Bank Curator

VBS Mutual Bank Curator

VBS Mutual Bank Curator,Following liquidity problems, VBS Bank was placed under curatorship on 11 March 2018 in terms of the South African Banks Act, Act 94 of 1990, by the South African Reserve Bank (SARB). A report released by the SARB in October found evidence of wide-scale looting, fraud and corruption, and recommended that bank leadership, public officials and auditors be criminally charged and held liable in civil proceedings.

The report found that R1,894,923,674 (US$ 130 million) was transferred from the Bank to fifty three individuals between 15 March 2015 and 17 June 2018. According to the report, R16,148,569 (US$1.09 million) of that money went to Brian Shivambu, younger brother of the Economic Freedom Fighter senior politician Floyd Shivambu. The report also implicated the African National Congress’s deputy chairperson for Limpopo, Florence Radzilani, and treasurer, Danny Msiza

The curator of VBS Mutual Bank, SizweNtsalubaGobodo represented by Anoosh Roopla, has lodged an urgent application with the High Court for Vele Investments to be placed into liquidation.

The curator is also requesting that Tshifhiwa Matodzi, former chairman of VBS Mutual Bank, Andile Ramavhunga, former CEO of VBS Mutual Bank,  Philippus Truter, former CFO of VBS Mutual Bank, Phopi  Londolani Mukhodobwane, general head of Treasury and Capital Management and Robert Madzonga, former COO of VBS Mutual Bank estates be sequestrated.

VBS Mutual Bank established in 1982, was placed under curatorship in March due to its increasing liquidity challenges emanating from a failure of the board of directors and executive management to manage the mutual bank’s rapid growth and the funding of its liquidity.

Vele, which was one of the bank’s major shareholders allegedly mismanaged VBS funds.

According to a media statement, Rooplal’s “duty in terms of Section 69 of the Banks Act, 94 of 1990, as read with Section 81 of the Mutual Banks Act, 124 of 1993 is to recover all assets for the benefit of the VBS Mutual Bank’s creditors”.

The proceedings were initiated following certain preliminary findings made by Advocate T Motau, who was appointed by the South African Reserve Bank, after Rooplal in April 2018 recommended a forensic investigation be conducted into the affairs of VBS Mutual Bank.

In the statement, the curator said he is “confident that this course of action will place VBS Mutual Bank in the best position to recover the assets due to the bank and to prevent any further dissipation of assets to the prejudice of depositors”.