VBS Stakeholders’ Forum blames govt for closing bank at first sign of trouble in 2018
VBS collapsed after almost R2 billion was stolen by executives and politicians over three years.
FILE: VBS Mutual Bank in Thohoyandou. Picture: Sethembiso Zulu/EWN
JOHANNESBURG - The VBS Stakeholders’ Forum has blamed the government for closing the mutual bank at the first sight of trouble in 2018.
VBS collapsed after more that R2 billion was stolen by executives and politicians over three years.
ALSO READ: VBS Stakeholders' Forum still looking to claw back money for depositors who lost savings
Earlier in July, the bank's chairman, Tshifhiwa Matodzi, was sentenced to 15 years in prison on multiple counts of fraud, racketeering, money laundering and theft.
Investigations in 2018 found 18 municipalities had invested funds in the VBS Mutual Bank against regulations by National Treasury.
Municipalities were later instructed to withdraw these unlawful investments, although not all of it has been clawed back.
Thousands of depositors also lost their life savings in what’s been labelled the great bank heist.
A decision was taken to wind up the bank after a report found there was nothing left to salvage.
Chairperson of the VBS Stakeholders’ Forum Madambi Muvhulawa said more could have been done to save the now-defunct bank.
“According to the financials, the bank was still solvent.”
The forum again called for accountability for the scandal, for depositors to be paid back and for the bank to be revived.