Latest news with #VBSMutualBank
TimesLIVE
01-07-2025
- Business
- TimesLIVE
About a third of R2.3bn looted from VBS Mutual Bank recovered
Nearly R730m has now been clawed back from the wreckage of VBS Mutual Bank, the South African Reserve Bank's Prudential Authority (PA) said in its latest annual report. A figure confirmed by VBS Mutual Bank liquidator Anoosh Rooplal, this is almost a third of the about R2.3bn plundered through fraud and theft. Advocate Terry Motau's 148-page report — 'VBS Mutual Bank: The Great Bank Heist', released in October 2018 — blew the lid off the looting, leading to 29 criminal cases, with nine matters currently now before the courts. VBS Mutual Bank was placed in final liquidation in November 2018. 'Collection efforts on the loan book are ongoing, with significant progress achieved to date,' the report states. 'The current focus is on securing further recoveries for the benefit of the proven creditors.' Rooplal has already made payments to creditors since taking over the bank's affairs. In 2022, he paid R159m — amounting to 7c in the rand to proven concurrent creditors. In December last year, he paid R458m, which constitutes 20c in the rand. Asked when he will make the next payment, Rooplal said on Monday that it was an ongoing process, 'but the significant dividends have been paid'. The second dividend distribution in December brought the total payments to creditors to R617m, he said at the time. There is no court date yet for the liquidation application of Ithala SOC Limited (Ithala Bank), the PA said in its report. 'The liquidation application is still being ventilated,' the Reserve Bank clarified on Monday. 'The matter will only become ripe for hearing after all parties have filed their respective papers. As such, there has been no communication from the court regarding the outcome of the application.' Lack of co-operation by Ithala In January, the PA filed an application for the provisional liquidation of the entity, alleging that it was unlawfully accepting deposits. Ithala Bank, the Ithala Development Finance Corporation and KwaZulu-Natal's MEC for economic development are opposing the matter. This follows the PA's appointment of a repayment administrator to help transfer the deposits held by Ithala to a registered bank. 'However, the progress was hindered by a lack of interest from registered institutions and co-operation by Ithala,' the PA says in its report. 'The PA and the repayment administrator have since held regular engagements with relevant stakeholders to find a solution for transferring the deposits as quickly as possible in parallel to the liquidation application,' it said. After the PA filed for Ithala's provisional liquidation, the entity's deposit accounts were frozen — according to the Reserve Bank, 'to preserve the funds and prevent it from using depositors' funds for other operational purposes'. But Francois Rodgers, the DA MEC for finance, told Business Times last week that they wanted to interdict the Reserve Bank's liquidation efforts. 'We are in a situation where some depositors have hundreds of thousands that they cannot access due to the liquidation, which is wrong,' he told the paper. Business Day reached out to both Rodgers and his spokesperson but received no response. Business Day previously reported that finance minister Enoch Godongwana approved a R2bn guarantee to Ithala Bank's 223,166 retail depositors. The guarantee would facilitate payments to the depositors by one or more banking institutions to ensure the accounts of depositors can be migrated timeously and funds can be made available. Current risks to the banking sector In her overview, Reserve Bank deputy governor and CEO of the PA Fundi Tshazibana noted that as macroeconomic conditions improved and inflationary pressures subsided, South African banks were likely to see an improvement in their credit risk profiles over the short to medium term. 'However, geopolitical tensions and increased conflicts continue to pose uncertainties and risks to the sector,' she said. 'Globally, there appears to be a growing trend towards deregulation, with an emphasis on reducing capital and other regulatory requirements for banks. As we look ahead, it will be crucial for South African banks to remain vigilant, ensuring strong governance and risk management practices to safeguard the banking system.'
The Citizen
07-06-2025
- Politics
- The Citizen
Rebuild VBS, urges ANC treasurer-general
Ramokgopa advised ANC leaders to speak with one voice to preserve the dignity of the party. VBS Mutual Bank customers queue outside the bank, demanding their money in Thohoyandou, Limpopo, on 20 June 2018. Picture: Gallo Images/ANTONIO Muchave/Sowetan ANC treasurer-general Gwen Ramokgopa has pleaded with the Reserve Bank and National Treasury to assist the Vhembe community in Limpopo to rebuild the collapsed Venda Business Society (VBS) Mutual Bank. More than 53 people have been charged for theft, corruption, fraud, money laundering, contraventions of the Prevention of Organised Crime Act, and racketeering for stealing and looting more than R2 billion of VBS Mutual Bank money since 2018. Ramokgopa was speaking during a well-attended memorial service of the late ANC veteran, Reverend Dr Tshenuwani Simon Farisani, at the George Phagadi Town Hall in Thohoyandou, Limpopo, this week. Farisani passed away on Thursday, 29 May 2025, and his funeral will be held at the University of Venda Stadium, outside Thohoyandou, on Saturday. The former prominent Lutheran Church Bishop and known political struggle hero was honoured for his resilience in the fight for freedom and equality against the apartheid regime. The service was attended by South African Communist Party deputy national chairperson Thulas Nxesi, Limpopo first female premier Dr Phophi Ramathuba, Limpopo ANC secretary Vhamusanda Reuben Madazhe, Speaker of the Limpopo Legislature Dr Makoma Makhurupetsa, Mopani district municipality Mayor Pule Frelimo Shayi and leaders from various religious and political structures in the province and beyond. Speaking to the mourners at the service, Ramokgopa said Farisani had fought for VBS victims. 'Government, under the tutelage of President Cyril Ramaphosa, has been on the side of the victims. We always said those who stole from VBS must be punished and languish in jail. 'The Reserve Bank and the Department of Finance, under the tutelage of Minister Enoch Godongwana, must assist the grieving communities to rebuild the collapsed VBS Mutual Bank,' she said. 'We have many times successfully rebuilt our country, including the health system in Gauteng during the predicaments of Life Esidimeni. We have also successfully rebuilt the Limpopo provincial government after it collapsed through fraudulent activities after some in the era of mismanaged government funds. 'There is nothing that can stand in our way to rebuild the VBS Mutual Bank and begin on a clean sheet,' she said to thunderous applause. ALSO READ: Simelane VBS matter will not be swept under carpet Lazy mayors The treasurer also scolded lazy mayors, who sit idly while communities face poor service delivery. 'When I came here, I drove a sizeable number of potholes, and the feeling was unbearable. For the record, good roads are important to us because they have a positive impact on the economy of our communities, our regions, our province and our country. 'They attract investment that often blossoms our economy. I therefore implore you, Honourable Premier Ramathuba and your mayors, to fix all your roads and patch potholes so that investors can invest in your municipalities. 'Through this, we can win the fight against the triple challenges of inequality, unemployment and poverty,' she said. ALSO READ: Mayor claims she was exonerated of VBS graft allegations ANC conference slammed However, the memorial service did not go without controversy. Veteran journalist Mathatha Tsedu was invited to the stage to give testimony on the life well spent by Farisani and how his political acumen bolstered his journalism prowess. However, Tsedu used the platform to voice criticism of the irregularities surrounding the ANC Vhembe regional elective conference in May. 'This is the ANC of Farisani. He would be disappointed by how you skipped vital items in the programme, only to jump into nominations and elections of the top five officials. 'How do you jump the secretariat report and other vital items on the programme as if the main objective of the conference was to elect leaders,' he asked. The conference saw Tshitereke Matibe living up to his name — 'Tshitereke,' a Venda name meaning 'protest' — as he staged a bold demonstration at the venue, ultimately securing a fourth term. Tsedu's criticism was challenged by an ANC regional executive committee (REC) member. 'Tsedu does not understand the politics of the ANC. This is not journalism, he must just leave politics to politicians, and journalism to the newsroom. You can just read from his address that he is far from within,' said the senior member, speaking to The Citizen on condition of anonymity. The leader, who asked for his name to be withheld for fear of reprisal, said that despite the woo-ha, Matibe won the conference hands down. In response, Ramokgopa advised ANC leaders to speak with one voice in an effort to preserve the dignity of the party. NOW READ: Calls for VBS-linked Bojanala mayor to go
The Citizen
22-04-2025
- Business
- The Citizen
Mayor claims she was exonerated of VBS graft allegations
Forensic report accused Suzan Nthangeni of being involved in the VBS investment graft. VBS Mutual Bank customers queue outside the bank , demanding their money in Thohoyandou, Limpopo, on 20 June 2018. Picture: Gallo Images/ANTONIO MUCHAVE/SOWETAN Bojanala Platinum district municipality mayor Suzan Nthangeni is disputing that she is implicated in a forensic report into VBS Mutual Bank investment graft at Madibeng local municipality. Instead, Nthangeni, who was MMC for finance at Madibeng municipality in 2017, the time of the illegal investment of R50 million of the municipality's funds into the VBS Bank, said the report by independent firm Movundlela Consulting that implicated her and three senior officials lacked credibility. The report accused Nthangeni, manager of financial reporting Lucky Steenkamp, manager of expenditure and acting chief financial officer Siza Rikhotso and Bonolo Koitsiwe, head of cash, investment and grant management, of being involved in the VBS investment graft and recommended that criminal cases be opened against them with the SA Police Service for contravening the Municipal Finance Management Act (MFMA). ALSO READ: Is Ramaphosa's refusal to fire Simelane a survival strategy? The forensic investigation, instituted by then chief financial officer Morris Maluleke, said Steenkamp failed to keep an original contract document signed between Madibeng and VBS on the investment, as required by policy. The document went missing. The report said Steenkamp and Rikhotso allegedly took the decision to invest with VBS and Nthangeni allegedly suggested VBS be allowed to submit a quote. Rikhotso allegedly instructed that the bank to be chosen for the investment. It also found they allegedly contravened the MFMA and were suspected of graft. But when the Movundlela report was tabled in council in 2018, it was rejected by council because it was instituted by Maluleke, who was chief financial officer, as that constituted a conflict of interest and natural justice. Nobody was implicated by the provincial probe or charged for the VBS matter. ALSO READ: Former CFO gets 5-year sentence and R150k fine in VBS scandal Maluleke subsequently became a municipal manager and Rikhotso a chief financial officer. The provincial administration instituted another forensic investigation by audit firm SikelaXabiso and its report was tabled in council and its recommendation adopted. The report absolved Nthangeni, Steenkamp, Rikhotso and Koitsiwe of any wrongdoing. Recently, some ANC members called for Nthangeni to be removed as Bojanala mayor as the party policy is that no member implicated in the VBS scandal should be appointed to a state position. But Nthangeni said she was innocent as the provincial forensic investigation report, which was adopted by council, exonerated her. NOW READ: Floyd Shivambu may have seen MK as a 'haven' with VBS cloud hanging over him
