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


This article first appeared on 702 : As VBS Mutual Bank dies, its curator reminds creditors they must still pay


Recommended

by NEWSROOM AI
Read More
Sygnia's Magda Wierzycka to sue Iqbal Survé again after charges laid against her

Sygnia's Magda Wierzycka to sue Iqbal Survé again after charges laid against her

The Money Show’s Bruce Whitfield interviews Magda Wierzycka, CEO at Sygnia Group.

[Watch the latest adverts] Do you agree? Chicken Licken is the boss of Nando’s!

[Watch the latest adverts] Do you agree? Chicken Licken is the boss of Nando’s!

Chicken Licken’s latest ad flame-grills the most recent one by Nando’s, says Nicholas Kühne of Wunderbrand.

10 most-read 'small business' articles from The Money Show in 2018

10 most-read 'small business' articles from The Money Show in 2018

Small business guru Pavlo Phitidis from Aurik Business Accelerator broke the internet with these helpful articles.

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
Popular shoe brand Vans ask Ackermans to remove "knock-offs" from shelves

Popular shoe brand Vans ask Ackermans to remove "knock-offs" from shelves

Vans' brand manager says although this is a recurring problem its main concern is that this particular "fake" is a very close copy.

10 advertisements that broke the internet in 2018

10 advertisements that broke the internet in 2018

Some were good, some were great, many were just plain awful. They all went viral.

10 safety tips from Sanparks following latest robbery at Table Mountain camp

10 safety tips from Sanparks following latest robbery at Table Mountain camp

The Slangkop Tented Camp in Kommetjie was hit by thieves the weekend. Here's advice on how to keep safe in the area.

Tons of coal exported from SA not Eskom grade says expert

Tons of coal exported from SA not Eskom grade says expert

While South Africans are sitting in the dark million tons of coal is shipped to other countries like China, Japan and India.

Here's how to check your load shedding schedule in Cape Town

Here's how to check your load shedding schedule in Cape Town

Eskom has warned that more power cuts can be expected as maintenance continues over the next twelve months.