"Absolutely no," was the response, on Wednesday, of Reserve Bank governor Lesetja Kganyago to the proposal that VBS Mutual Bank be taken over by the Limpopo government through its economic development agency. The proposal apparently emerged from ANC members in Limpopo and was reportedly presented to the leadership of the party. VBS Mutual Bank is under curatorship and is the subject of a forensic investigation. Allegations have been made of significant looting of the bank’s deposits by its executives and shareholders. Answering questions from members of parliament’s finance committee following his briefing on the state of the economy, Kganyago noted that the one bank, owned by a provincial government — Ithala Bank, owned by the KwaZulu-Natal provincial government — was a legacy issue and should not be replicated. On the other hand, Kganyago fully supported the idea that VBS remain in black hands should it eventually be sold. However, he said prospective buyers should wait until its ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now