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).

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