R800m more than thought looted from VBS – liquidator
The liquidator of VBS Mutual Bank estimates that about R800m more has been stolen than initially thought, says a Daily Maverick report. It notes that in a report to creditors sent out this week, liquidator Anoosh Rooplal’s calculations show that creditors’ claims against the bank will probably top R2.7bn.
Pauli Van Wyk writes that a year into the closing and liquidation process of VBS, liquidator Anoosh Rooplal is the only authority actually showing any results. Five of the robbers-in-chief – all VBS bank managers – have been sequestrated.
No criminal prosecutions have been initiated.
VBS Mutual Bank managers willfully enriched themselves when they plotted to rob the bank in a vast scheme involving more than 50 people. Between 2014 and 2018 the bank was robbed into insolvency, prompting the Reserve Bank to initiate a forensic investigation in March 2018.
Advocate Terry Motau and law firm Werksmans found the bank’s bookkeeping in disarray. Now Rooplal’s investigation suggests that R800m more has been stolen than initially thought.
He also finds it ‘highly likely’ that a further forensic investigation into the flow of funds to fourth and fifth-tier receivers would be necessary.
This will shine a spotlight on the ultimate beneficiaries of the VBS loot, and not only the fronts used to siphon money out of the bank, suggests the DM report.
Fourteen municipalities that deposited R1.6bn in VBS were unlikely to ever recover their money, according to Auditor-General Kim Makwetu. In his general report into local government audit outcomes, Makwetu said the losses were impacting the ability of some of these municipalities to deliver services, reports Fin24.
Sixteen municipalities deposited money into VBS in contravention of municipal investment regulations.
Two – Dr Kenneth Kaunda District Municipality in the North West and JS Moroka Local Municipality in Mpumalanga – managed to withdraw their funds in time.
VBS was placed under curatorship by the Reserve Bank in March last year and the Gauteng High Court (Pretoria) ordered that the mutual bank could be liquidated in November last year.
In his report, Makwetu said the potential R1.6bn loss in investments made with VBS Mutual Bank exposed a weakened financial position of the affected municipalities and could have varying levels of impact on service delivery where it relates to infrastructure and maintenance projects.
Makwetu said eight Limpopo municipalities deposited R1.2bn with VBS, affecting these municipalities' ability to deliver on infrastructure and maintenance projects in the 2017-18 year and potentially the following year.
'This also further contributed to the poor financial state of municipalities within the province, with more than half of them reporting a deficit, as their expenses exceeded their income,' wrote Makwetu.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
