3 processes used to loot identified in VBS Bank 'heist’ report
In the report, Advocate Terry Motau says captors of VBS manipulated the banking systems by making enormous fictitious deposits in favour of VBS’s majority shareholder - Vele Investments
PRETORIA - Advocate Terry Motau has identified three processes which VBS Mutual Bank and Vele Investments executives used to loot the bank of deposits which included manipulating the banking system and bribing state officials to facilitate cash flow.
The details are contained in Motau's final report that he's named 'The Great Bank Heist' which was handed over to the Reserve Bank last week.
VBS was placed under curatorship in March this year; an estimated R1.8 billion was stolen over a three-year period.
Motau found large sums of money were paid to various perpetrators of the scheme as rewards for their participation and bribes were paid to other parties to keep quiet.
He says there was a concerted campaign to attract substantial deposits from municipalities by the payment of so-called commissions to solicit such payments.
This included payments of bribes to various public officials who were in a position to influence making such deposits.
Motau says the captors of VBS manipulated the banking systems by making enormous fictitious deposits in favour of VBS’s majority shareholder - Vele Investments.
The advocate says the parties then went on a massive spending spree at the expense of VBS depositors.
VENDA KIND BENEFITS
Motau has also revealed how the Venda king and his advisor pocketed more than R45 million from VBS Bank to lend the royal family's support to the financial institution.
He found that VBS Bank and Vele Investments paid Venda King Toni Mphephu Ramabulana more than R17 million.
The king’s advisor Attorney Paul Makhavu was paid more than R30 million.
Makhavu has described the payments as shameful and reveals they were received for lending the support and influence of the royal family to VBS and Vele.
In 2014, the bank was primarily involved in taking deposits from retail depositors, such as burial societies and stokvels but later set its sights on large deposits from municipalities.
In July, the Reserve Bank guaranteed deposits up to R100,000 and allowed those funds to be withdrawn.
However, many depositors have lost their live savings in this criminal scandal.
(Edited by Winnie Theletsane)