Vele wants to challenge VBS’s curatorship because it is ‘unconstitutional’
Vele Investments, the majority shareholder in VBS Mutual Bank, intends applying to the court to challenge the decision to place the bank into curatorship on the grounds that it is inconsistent with the Constitution. In an affidavit filed with the High Court in Pretoria on Wednesday, Vele director Maanda Manyatshe said the Reserve Bank’s decision to place VBS under curatorship, triggered by severe liquidity challenges at the bank, was not constitutionally sound as banking regulations dealing with curatorships infringed on the rights of the people affected by them. Previously, the placing of a bank under curatorship required the written consent of the bank’s board of directors or its CEO, but this was amended in 2013 to allow for curatorships without such written consent or even the involvement of the courts. "A dispute on whether a curatorship is appropriate or not is not a process that can be brought before a court and consequently infringes the constitutional rights … of persons af...
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