As VBS Mutual Bank dies, its curator reminds creditors they must still pay

VBS Mutual Bank in Thohoyandou. Picture: Sethembiso Zulu/EWN

In my investigation into the Bank's 2017 year-end financial statements, I found wide-scale fraud and theft which had been perpetrated across VBS Mutual Bank leaving a related financial hole of some R1.8 billion. In the absence of a legitimate offer to salvage the Bank (as this, in essence, would be throwing good money after bad money to plug the financial hole), I had little choice but to recommend that the Bank be wound down.

Anoosh Rooplal, Curator of VBS Mutual Bank

Earlier in the week, the Prudential Authority (financial regulator) in consultation with the Governor of the Reserve Bank officially agreed with the curator and the findings of the forensic report into the looting of VBS Mutual Bank.

In other words; VBS Mutual Bank is unable to repay its debts due to massive fraud and the theft of depositor funds.

The High Court will on 13 November consider the Prudential Authority's application to place VBS Mutual Bank into liquidation, thereby ending the curatorship.

Customers will continue to have access to their funds if they have less than R100 000 in deposit.

Those who owe the bank money will remain liable to pay their debts.

Ray White (in for Bruce Whitfield on The Money Show) interviewed Rooplal.

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

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI
Read More
Massmart explains store closures and retrenchments in the face of a R1.3bn loss

Massmart explains store closures and retrenchments in the face of a R1.3bn loss

Massmart has withheld their dividend as it swings to a R1.3bn loss

Budget 2020 made simple: how does it impact my personal finances?

Budget 2020 made simple: how does it impact my personal finances?

Wealth builder Warren Ingram on how the new budget affects you.

Spur to open 11 more outlets in South Africa

Spur to open 11 more outlets in South Africa

Spur releases results saying it plans to open 11 outlets in SA and 17 internationally in the second half of the year.

Taxpayer? Got R3 billion? The EFF wants you to save the gutted VBS Mutual Bank

Taxpayer? Got R3 billion? The EFF wants you to save the gutted VBS Mutual Bank

A better option to serve black interests, says Warren Thompson, is Patrice Motsepe’s TymeDigital. It won’t cost taxpayers a cent.

I worked for that money! - Robert Madzonga (VBS shareholder Vele Investments)

I worked for that money! - Robert Madzonga (VBS shareholder Vele Investments)

The Money Show’s Bruce Whitfield interviews Madzonga, who claims innocence and that Chairperson Tshifhiwa Matodzi lied to him.

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

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

"VBS Mutual Bank — The Great Bank Heist". Bruce Whitfield interviews Intellidex Financial Analyst Stuart Theobald.

Popular articles
Budget 2020 made simple: how does it impact my personal finances?

Budget 2020 made simple: how does it impact my personal finances?

Wealth builder Warren Ingram on how the new budget affects you.

Spur to open 11 more outlets in South Africa

Spur to open 11 more outlets in South Africa

Spur releases results saying it plans to open 11 outlets in SA and 17 internationally in the second half of the year.

Massmart explains store closures and retrenchments in the face of a R1.3bn loss

Massmart explains store closures and retrenchments in the face of a R1.3bn loss

Massmart has withheld their dividend as it swings to a R1.3bn loss

'Blame Madiba  and Mbeki for Eskom' - unions vow to fight Budget 2020 wage cuts

'Blame Madiba and Mbeki for Eskom' - unions vow to fight Budget 2020 wage cuts

''Government is speaking with forked tongue and Budget 2020 came as a shock''. Unions want to fight planned wage cuts.

 #Budget2020: There is a huge sense of relief among retailers - Edcon

#Budget2020: There is a huge sense of relief among retailers - Edcon

On Wednesday Finance Minister Tito Mboweni said there would be no new income tax hikes this year.

Cape Winelands farm workers protest following eviction of six family members

Cape Winelands farm workers protest following eviction of six family members

Women on Farms co-director Carmen Louw says they hope the Extension of Security of Tenure Act will be amended.

Levels of child hunger have decreased in SA but concerns remain around stunting

Levels of child hunger have decreased in SA but concerns remain around stunting

Joanne Joseph speaks to University of Cape Town Children’s Institute's communications and education specialist Lori Lake.

Public Protector makes damning findings against Lesedi Municipality

Public Protector makes damning findings against Lesedi Municipality

Eyewitness News reporter Edwin Ntshidi gives a summary of the findings made by Mkhwebane.

Workplace toxicity: In a new exponential world, command and control doesn't work

Workplace toxicity: In a new exponential world, command and control doesn't work

Azania Mosaka speaks to Cycan CEO Bryan Hattingh about the difference between a tough leader and a toxic leader.

What Prince? 'He made it clear that he just wants to be called Harry'

What Prince? 'He made it clear that he just wants to be called Harry'

EWN UK correspondent Gavin Grey says the prince completed his final round of royal duties on Wednesday in Scotland.