The noose is tightening around the erstwhile executives of the defunct VBS Mutual Bank, with the assets of four of its five former senior managers due to be seized to pay back some of the money stolen from the bank.

A Business Day report notes the application to sequestrate the executives was in response to large-scale fraud in which about R2bn was stolen from VBS Mutual Bank.

Last week the Gauteng High Court (Johannesburg) dismissed an application for leave to appeal by Robert Madzonga, the bank’s former COO, making him the fourth executive in final sequestration.

Philip Truter, the former CFO, Phophi Londolani Mukhodobwane, the bank’s former GM of treasury, and Tshifhiwa Matodzi, the former chair, were placed under final sequestration in 2018.

The report says Andile Ramavhunga, the former CEO of the bank, and his wife Zanele are expected in court today to hear the outcome of an application for leave to appeal against the final sequestration order obtained by the liquidator in August.

While the various court processes continue, the liquidator has called a second creditors’ meeting to take place at the Limpopo High Court (Polokwane) on 8 November for municipalities and retail depositors who have not yet made valid claims.

A notice of the meeting was gazetted this month.

Full Business Day report