Execs at VBS Mutual Bank plundered it to death, it can’t be saved - report

The Venda Building Society Mutual bank logo. Picture: vbsmutualbank.co.za

There’s only a single mention of Jacob Zuma… the report alleges the Jacob Zuma Foundation was the recipient of R1 million which was part of bribes paid in an effort to get a billion rand deposit into the bank from Prasa… the home loan that he received didn’t come up.

Stuart Theobald, Intellidex

We don’t know where that R16 million that went to Brian Shivambu ended up… the obvious question to ask is whether any of that money found its way to the EFF itself… it’s a question that the EFF since the release of the report has not answered.

Stuart Theobald, Intellidex

There was a key role played by the Limpopo ANC Treasurer in putting pressure on municipalities in order to direct deposits into the bank.

Stuart Theobald, Intellidex

Executives at VBS Mutual Bank plundered it do death; it can’t be saved, according to forensic investigators led by Werksmans Attorneys and advocate Terry Motau.

The investigators – appointed by the Reserve Bank – found that criminal charges must be laid against the guilty parties and some employees of KPMG for falsely signing off accounts.

Some of the findings of the report (“VBS Mutual Bank — The Great Bank Heist”) include:

  • 53 perpetrators (both natural and juristic) stole R1.894 billion between 1 March 2015 and 17 June 2018.

  • The most substantial part of the stolen money went to people and entities related to VBS execs, including its largest shareholder (Vele Investments) which received R936 million.

  • VBS Mutual Bank Chairperson Tshifhiwa Matodzi received R325 million of the loot. CEO Andile Ramavhunga took R28.9 million for himself. Other execs guilty of raiding the cookie jar include Robert Madzonga (R30.3 million) and Phophi Mukhodobwane (R30.5 million).

  • KPMG partner Sipho Malaba stole R34 million.

The Money Show’s Bruce Whitfield interviewed Stuart Theobald, Financial Analyst and Chairperson at Intellidex.

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

The PIC invested significantly into VBS…

Stuart Theobald, Intellidex

…Commissions were paid, particularly in Limpopo, to get municipalities to deposit at VBS…

Stuart Theobald, Intellidex

I’ve never seen anything like this in any banking system… it’s so brazen… a smash and grab…

Stuart Theobald, Intellidex

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