The final two directors of VBS Mutual Bank have been finally sequestrated, Netwerk24 reports. Liquidator Anoosh Rooplal announced that the Gauteng High Court (Johannesburg) dismissed the challenges of former operations head Robert Madzonga, former chief executive Andile Ramavhunga, and his wife Zanele, to their provisional sequestrations.

Rooplal’s provisional appointment as liquidator was also made final and he will now call a second meeting of creditors.

Ramavhunga was implicated in the large-scale corruption that took place at VBS which saw the bank lose almost R2bn says a SowetanLIVE report.

The report by Advocate Terry Motau, titled The Great Bank Heist, found that executives at both VBS Bank and its majority shareholder Vele Investments devised a plan to defraud the bank.

Ramavhunga and at least 50 other individuals were found to have financially benefited from this scheme after it was discovered they used the stolen money to buy immovable assets, luxurious vehicles, a helicopter and pay off their debts.

He received a R15m bonus through his company Dambale Holdings, which represented Vele Investments in a false sales acquisition of a Zimbabwe-based company.

Judge Elias Matojane has said that as a qualified chartered accountant and the CEO of VBS Bank, Ramavhunga ‘must have known that VBS paid for and purchased a helicopter for an amount of R12 835 000’.

‘He must have also known that (Tshifhiwa) Matodzi (VBS board chairperson) purchased a Ferrari for an amount of R6 500 000,’ said Matojane.

It was also found that Ramavhunga was aware of bribery and corruption involving payments to senior executives at the PIC to keep them silent.

He also knowingly signed a R1.5m ‘performance incentive’ to Bhekwam Holdings, a company owned by VBS chief banking officer Gift Manyanga.

Full Netwerk24 report (subscription needed)

Full SowetanLIVE report

The judge ruled that the trustee of Madzonga’s now sequestrated estate must conduct a proper inquiry into his affairs that may lead to the recovery of the debt he owed to the liquidated financial institution or a portion of it, says a Cape Times report.

Matojane found it was apparent Madzonga participated and benefited in the fraudulent VBS scheme.

‘Had Madzonga not appropriated the proceeds of the fraudulent scheme, VBS would not have suffered the loss to the extent it did,’ he said. According to the judge, Madzonga – as a concurrent wrongdoer – was liable for the full amount of VBS’ loss, which stood at more than R1.52bn.

Madzonga also came under fire from Matojane for attempting to mislead the Registrar of Banks by withholding information on his character, including details of the Hawks investigation into his role in the ICT Indaba sponsorship when he was still the mobile giant MTN’s chief corporate officer in 2013.

‘He also sought to create an impression that his tenure as COO of VBS was of (a) short duration in order to distance himself from any involvement in the fraud and theft committed against VBS, particularly in 2017 and thereafter,’ the judge said.

Full Cape Times report (subscription needed)