The long arm of the law seems to have caught up with former VBS Mutual Bank spokesperson Tsumbo Matambela – as liquidators of the defunct bank are pursuing a writ of execution against the assets he allegedly obtained through loans from the bank which he allegedly never repaid.

A City Press report says an asset recovery document from the liquidators shows that Matambela used advanced loans from the bank to purchase a R4m property in Roodepoort with the bank also advancing an amount of more than R700 000 which he used to establish his business transactional account.

In the writ of execution applied for by the liquidators at the Gauteng High Court (Johannesburg) on 27 September, they cite that Matambela never undertook to repay both loans, and selling his known assets would be the only viable option.

Liquidators cite that both Matambela and his wife have been afforded the opportunity to remedy the breach, but have failed to do so.

The court documents also cite that Matambela was contracted to pay the loans separately as the funds were received separately between October 2014 and September 2015.

The papers further reveal that the monthly instalment of the mortgage loan is R31 694 and that the payment is 60 months in arrears.

Matambela said he had tried to reach a payment settlement with the liquidators, but it was unsuccessful because he had not been making money. 

He said: ‘They did notify me of such action, but I pleaded with them to give me more time. Things have been tough under the current economic situation but I will pay as soon as I am able to.’

He added that the loans were taken while he was doing consultancy work for the defunct bank.

Full City Press report