VBS Mutual Bank 'heist' report recommends criminal charges

Forensic investigator in to VBS Mutual Bank’s affairs Advocate Terry Motau says various stakeholders including the Reserve Bank should be afforded the opportunity to process the findings and recommendations made in his forensic investigation report, “VBS Mutual Bank – The Great Bank Heist”.

The report which reveals widespread looting and subsequent cover-ups in the bank's operations was released to the public on Wednesday.

A number of directors and executives have been implicated in looting the bank of deposits by manipulating the banking system and bribing state officials to facilitate cash flow.

Almost R2-billion was lost by the bank.

We did find evidence that, by way of an example, you would find circumstances where money is lent to either entities or individuals without the proper credit procedures being followed.

Advocate Terry Motau, Forensic investigator in to VBS Mutual Bank’s affairs

What I found is a total breakdown in systems and where you would find power being centralised within a particular office.

Advocate Terry Motau, Forensic investigator in to VBS Mutual Bank’s affairs

Decisions would be taken by a particular individual and without due regard to the financial delegations. For example you would find instances where transactions or approvals above a particular threshold should be referred to the board and they were not. Whether that was deliberate, I do not want to dwell on that...

Advocate Terry Motau, Forensic investigator in to VBS Mutual Bank’s affairs

READ: How VBS Mutual Bank was plundered

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

Motau says criminal charges have been recommended against those responsible.

I have made those findings and recommendations.

Advocate Terry Motau, Forensic investigator in to VBS Mutual Bank’s affairs

I think in fairness, various persons and stakeholders should be afforded the opportunity to read the report, process it and see how they are going to respond to it. There is supposed to be a two-stage process, firstly the Reserve Bank must interrogate the report and make a decision whether they are going to accept the findings and if they do they will then have to refer it to the prosecuting authorities who will also have to apply their own mind.

Advocate Terry Motau, Forensic investigator in to VBS Mutual Bank’s affairs

Motau says he cannot assert if the bank deliberately mislead the South African Reserve Bank in its dealings.

Click on the link below to listen to the full conversation...


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