PIC directors implicated in VBS scandal must face criminal charges - Fedusa

Ernest Nesane resigned with immediate effect after testifying at the forensic investigation into VBS, while Paul Magula was dismissed earlier this year for poor performance.

Picture: Investment Corporation. Picture: pic.gov.za

JOHANNESBURG - The Federation of Unions of South Africa (Fedusa) says it wants the two Public Investment Corporation (PIC) directors implicated in the VBS Mutual Bank fiasco to face criminal charges for their alleged improper conduct at the bank.

Ernest Nesane resigned with immediate effect after testifying at the forensic investigation into VBS, while Paul Magula was dismissed earlier this year for poor performance.

The pair were in charge of guarding the PIC's 25% stake in the bank.

Fedusa says that directors who have resigned or have been dismissed from a company, as in the case of Nesane and Magula, cannot escape being declared delinquent.

The federation's Dennis George says that the PIC must act firmly against the two, which should include pursuing criminal charges.

"There is really a history of bad corporate governance. We've seen it happen in the case of Steinhoff and now VBS Bank. Any person that commits a a crime must pay the price."

At the same time, the Democratic Alliance (DA), which on Friday laid fraud charges against the bank's executives, says it wants the police probe to expand to the PIC.