Reserve Bank commissions forensic investigation into VBS Mutual Bank
The Bank will investigate VBS, which was placed under curatorship after withdrawals from municipalities led to a cash crunch
The South African Reserve Bank has commissioned a forensic investigation into the affairs of VBS Mutual Bank to determine, among other issues, whether any of its business was conducted with the intent to defraud depositors. The Reserve Bank placed VBS into curatorship in March after withdrawals by municipalities — from which VBS was unlawfully accepting deposits — led to a cash crunch. "After a thorough assessment of VBS, [curator Anoosh Rooplal] recommended that an independent review of the business conduct of VBS be undertaken," the Reserve Bank said in a statement. Rooplal was unable to confirm the existence of R900m in deposits and has flagged related-party transactions. Reserve Bank deputy governor and CEO of the Prudential Authority Kuben Naidoo had appointed advocate Terry Motau to conduct a forensic investigation, the Bank said. Motau was part of a 2012 inquiry panel, headed by Judge Jake Moloi, which found then national police commissioner Bheki Cele unfit to hold office. T...
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