Sarb heads to court to have VBS Mutual Bank liquidated
The South African Reserve Bank’s prudential authority says the bank is hopelessly insolvent and beset by massive fraud.
The central bank placed VBS under curatorship earlier in 2018 due to increasing liquidity challenges.
The final straw for the Reserve Bank is a report penned by Advocate Terry Motau, which reveals how more than 50 people and companies stole almost R2 billion from the bank over a three-year period.
While the South African Reserve Bank’s prudential authority placed VBS under curatorship earlier in 2018, it now wants that arrangement terminated and the mutual bank wound up.
It says the bank is hopelessly insolvent and beset by massive fraud.
The Reserve Bank says the liquidation of the scandal-ridden bank will be in the interest of all parties.
It says this will also allow a liquidator to use laws on insolvency and the Companies Act for the recommendations of the report by Motau to be effected.
(Edited by Zamangwane Shange)