VBS Bank to be liquidated after Reserve Bank's application is unopposed
President Cyril Ramaphosa and some ANC MPs have argued that VBS should be rescued, but parties to the application by the Prudential Authority agree it should be wound down
VBS Mutual Bank will be liquidated after an application by the South African Reserve Bank's Prudential Authority was unopposed at the high court in Pretoria on Tuesday. 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 in October, 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 at the time. On Tuesday, a draft order was presented to the court that had been agreed to by all parti...
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