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

(The Money Show is brought to you by Nedbank. See Money Differently.)

(Also, read: "Billionaire Patrice Motsepe’s ARC to form South Africa’s first black-owned bank")

We call on all efforts to be focused on saving this bank of the black, poor and rural masses of our people. This must be done to ensure that the financial sector does not remain white-dominated and untransformed.

EFF statement

The execs in charge of VBS had very little interest in transforming the industry… and very little interest in advancing black clients…

Warren Thompson, Business Day

Yunus Carrim, Chairperson of Parliament’s Standing Committee on Finance, described the looting to death of VBS Mutual Bank as a “major setback for diversity and transformation in the financial sector’’.

Should VBS Mutual Bank be saved?

And, if so, at what cost?

Business Day financial journalist Warren Thompson has calculated that taxpayers would need to fork out up to R3 billion to save the gutted bank.

VBS Mutual Bank did not advance transformation, even before its disembowelment. A much better option than trying to save it, according to another Business Day columnist Stuart Theobald, is Patrice Motsepe’s TymeDigital, South Africa’s soon-to-be-launched first black-owned and controlled commercial bank.

Motsepe’s bank will serve black interests much more effectively than VBS Mutual Bank ever did, says Thompson.

And it won’t cost taxpayers a cent.

ANC MPs chanted “pay back the money!” as EFF Deputy President Floyd Shivambu took to the podium on Tuesday.

Shivambu’s brother Brian is one of the 50 people named in the VBS bank report for having received R16 million.

The Daily Maverick alleges that Floyd Shivambu and the EFF benefited directly from the R16 million paid to Brian Shivambu.

The Money Show’s Bruce Whitfield interviewed Carrim and Thompson.

Whitfield also spoke to EWN Parliamentary Reporter Lindsay Dentlinger.

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

The ANC says it can’t be blamed…

Lindsay Dentlinger, EWN

We’re not calling for a bailout of the wrongdoers… We have consistently called for its rescue if it is reasonable… Our main concern is the depositors… We hope they get back as much money as possible…

Yunus Carrim

The failure of this bank reproduces racial stereotypes…

Yunus Carrim

VBS is so small it’s literally irrelevant to South Africa’s financial system…

Warren Thompson, Business Day

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This article first appeared on 702 : Taxpayer? Got R3 billion? The EFF wants you to save the gutted VBS Mutual Bank


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