The VBS Mutual Bank is “hopelessly insolvent" and should be wound up as the purpose and object of the bank no longer exists. This is according to the Reserve Bank’s Prudential Authority’s application to the high court in Pretoria. The bank was placed under curatorship in March after looting by executives led to a liquidity crisis. A damning Reserve Bank report by advocate Terry Motau and Werksmans Attorneys, released earlier in October, detailed looting at VBS bank of nearly R2bn and identified the role of political players from the ANC and the EFF. In an affidavit to the high court, Prudential Authority CEO Kuben Naidoo said the bank was hopelessly insolvent. “Despite the efforts of the curator, the vortex of the black hole created by the role-players named in the investigator’s report, has resulted in the disappearance of VBS’s substratum and it being objectively impossible for VBS to achieve the purpose of its existence,” he said. This decision will not sit well with various ANC ...

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