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

Click here (then “like” the page) to follow Bruce on Facebook.

Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Where should government invest with small businesses?

Where should government invest with small businesses?

The Money Show’s Bruce Whitfield interviews Allon Raiz, CEO at Raiz Corp on government focus with small businesses.

Waiting for the Ramaphosa rise – where is the stock market growth?

Waiting for the Ramaphosa rise – where is the stock market growth?

The Money Show’s Bruce Whitfield interviews Warren Ingram, Personal Financial Advisor and Executive Director at Galileo Capital.

Pick n Pay's turnover for the year is around R82 billion

Pick n Pay's turnover for the year is around R82 billion

The Money Show’s Bruce Whitfield interviews Richard Brasher CEO at Pick n Pay on its growth.

Nene: SA needs a lot of structural reform to capitalise on global growth

Nene: SA needs a lot of structural reform to capitalise on global growth

The Money Show’s Bruce Whitfield interviews Finance Minister at Treasury Nhlanhla Nene on the IMF and World Bank Group meetings.

Get the best bits of ‘The Money Show’ emailed to you daily, right after it ends

Get the best bits of ‘The Money Show’ emailed to you daily, right after it ends

Do you enjoy listening to Bruce Whitfield’s The Money Show, but miss it sometimes?

Meet the brave Basani Maluleke, CEO at 'new and improved' African Bank

Meet the brave Basani Maluleke, CEO at 'new and improved' African Bank

Bruce Whitfield interviews Maluleke – the first black woman to lead a South African bank.

Popular articles
I was not introduced to Ajay Gupta - Grootes

I was not introduced to Ajay Gupta - Grootes

Stephen Grootes says he believes former Eskom CEO Brian Dames when said he was not formally introduced to the Gupta family.

Vavi: I can't sleep at night for making Zuma the president

Vavi: I can't sleep at night for making Zuma the president

Zwelinzima Vavi says South Africa is paying dearly for choices they've made in being angry with Mbeki and not thinking logically.

Why the PAC wants South Africa renamed Azania

Why the PAC wants South Africa renamed Azania

Pan Africanist Congress's Narius Moloto explains why it supports the name Azania, a word which he says has Arabic origins.

WATCH: Zuma denies crisis at Sassa, won't evaluate isiphithiphithi (chaos)

WATCH: Zuma denies crisis at Sassa, won't evaluate isiphithiphithi (chaos)

Zuma says he cannot be expected to act against Minister Bathabile Dlamini on social grants matter now before the ConCourt.

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

What in the World Happened To ... Felicia Mabuza-Suttle

What in the World Happened To ... Felicia Mabuza-Suttle

The #Afternoondrive team located entreprenuer and talk show host, Felicia Mabuza-Suttle to find out what she's been up to since she left our screens.