What VBS says about SA’s struggling local government sector
Fourteen municipalities lost R1.5bn in deposits in VBS Mutual Bank – deposits made in contravention of municipal regulations. Their failings are symptomatic of SA’s ailing local government sector
It is a year since the stark details emerged of the "great bank heist" at VBS Mutual Bank, which wiped out almost R2bn in savings and precipitated a liquidity crisis at the institution.
The brazen looting was first laid bare in a report by advocate Terry Motau and Werksmans Attorneys. It followed a forensic investigation conducted on behalf of the Prudential Authority after the bank was placed under curatorship in March 2018...