Deputy finance minister Mondli Gungubele says the VBS Mutual Bank model of offering banking services to underserviced poor communities must be sustained regardless of whether the bank is saved or not. “We will never take pleasure or get excited when any of our institutions collapse … it doesn’t send a good message. The services VBS has been providing [are crucial] … with those noble intentions the law must take its course… The attitude of [the] Treasury is that the services of VBS must be sustained … if they are saved, we will be excited,” Gungubele said during a question and answer session in the National Assembly on Wednesday.

On Monday, the Reserve Bank Prudential Authority said VBS is “hopelessly insolvent” and should be wound up, as the purpose and object of the bank no longer existed. It was necessary to bring an end to the curatorship as it would enable a liquidator to use the mechanisms provided by the insolvency and company law legislation to recover money from recipi...

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