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
3 risks to your retirement savings (and how to mitigate each of them)

3 risks to your retirement savings (and how to mitigate each of them)

Only 5% of South African retirement fund members will retire comfortably. Bruce Whitfield interviews advisor Warren Ingram.

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.

Gift of the Givers' Dr Imtiaz Sooliman – angel amongst men – talks about money

Gift of the Givers' Dr Imtiaz Sooliman – angel amongst men – talks about money

"I have no desire for clothes. I have no desire for holidays. I have no desire for outings. All I see is the suffering of people…"

You’re either a ‘money slave’ or a ‘money master’ (says author of 'My Money')

You’re either a ‘money slave’ or a ‘money master’ (says author of 'My Money')

The Money Show’s Bruce Whitfield interviews Sugar Creek financial expert and author of “My Money” Gerald Mwandiambira.

Popular articles
[LISTEN] Beware of the 'money bomb' scam this festive season!

[LISTEN] Beware of the 'money bomb' scam this festive season!

CEO of SA Banking Risk Information Center, Kalyani Pillay chats about the new festive season scam that's robbing people blind.

I broke my cell & deactivated my account after I saw Gigaba's vid - Coconut Kelz

I broke my cell & deactivated my account after I saw Gigaba's vid - Coconut Kelz

In the Current Affairs segment, satirical comedian Coconut Kelz chats about the real reason behind Malusi Gigaba's resignation.

[LISTEN] To give your kid a phone or not? That is the question

[LISTEN] To give your kid a phone or not? That is the question

In the parenting feature, creative parenting expert, Nikki Bush chats about the right age to give your child a cellphone.

[LISTEN] Cervical cancer is the only cancer that is caused by sex - Dr Eve

[LISTEN] Cervical cancer is the only cancer that is caused by sex - Dr Eve

Dr Eve discusses cervical cancer and how it can be prevented.

[LISTEN] Is Gqom really music? Callers share their views

[LISTEN] Is Gqom really music? Callers share their views

Callers on the open line discuss class appropriation by musicians and music genres.

Gift of the Givers' Dr Imtiaz Sooliman – angel amongst men – talks about money

Gift of the Givers' Dr Imtiaz Sooliman – angel amongst men – talks about money

"I have no desire for clothes. I have no desire for holidays. I have no desire for outings. All I see is the suffering of people…"

Telkom 947 cycle challenge road closures update

Telkom 947 cycle challenge road closures update

Joburg motorists are urged to take note of road closures during the 2018 Telkom 947 Cycle Challenge.

'They must release you, we want you outside' Minister Mokonyane tells Omotoso

'They must release you, we want you outside' Minister Mokonyane tells Omotoso

Nomvula Mokonyane tells rape accused Timothy Omotoso that they must release him as he is wanted outside.

Nondisclosed medical conditions may not matter in death claims - Ombudsman

Nondisclosed medical conditions may not matter in death claims - Ombudsman

32-year-old Brent Kruger was gunned down in gang crossfire but his life policy was denied by Old Mutual.