VBS Mutual Bank ‘severely mismanaged’, probably fraudulent – Sarb affidavit

VBS Mutual Bank was “severely mismanaged”.

There is also reason to believe the bank fraudulently reported and manipulated financial information.

That is according to the initial findings presented to the SA Reserve Bank (Sarb) by VBS Mutual Bank’s curator auditing firm SizweNtsalubaGobodo.

The Sarb put VBS Mutual Bank under curatorship in March due to the bank’s extreme liquidity crisis.

SizweNtsalubaGobodo says it's, as of yet, still unsure whether R900 million worth of corporate deposits are real

It also found that VBS Mutual Bank paid brokerage commissions to attract deposits, a “highly unusual” practice for banks, according to deputy Reserve Bank governor Kuben Naidoo.

The Money Show’s Bruce Whitfield interviewed Stuart Theobald, cofounder and executive chairperson at Intellidex.

Listen to the interview in the audio below (and/or scroll down for quotes from it).

We do know that the accounts of the bank appears to be chaotic, to say the least… The curator has already found a quite remarkable mess in the accounts of the bank… He’s found R1.8 billion of the assets of the bank exists in a suspense account [R1.8 billion in loans were unallocated, and unaccounted for]… That’s half of its balance sheet!

Stuart Theobald, Intellidex

It looks like there has been a cover-up…

Stuart Theobald, Intellidex

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