When investigators appointed by the Reserve Bank and led by advocate Terry Motau entered the doors of Vele Investments in May, they were acting in terms of powers conferred by the recently passed Financial Sector Regulation (FSR) Act of 2017. Vele Investments was the major shareholder in VBS Mutual Bank, which was recently placed in curatorship following what the Bank called a "severe liquidity crisis". Investigators were seeking to obtain evidence that would help in understanding what had transpired at the bank, including investigating potential fraud. Kuben Naidoo, deputy governor of the Bank, confirmed that the forensic investigation under way at VBS Mutual Bank through the appointment of investigators was being conducted using the powers afforded by the new act. 'Reasonable suspicion' These powers require nothing more than a "reasonable suspicion" regarding a contravention, or possible contravention, of a financial sector law as the basis on which to execute a search and seizure...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.