Only 10% of VBS depositors not repaid
The Prudential Authority (PA) has revealed only 10% of depositors who had deposited funds into VBS Mutual Bank in excess of R100 000 are now waiting in line to be repaid from any funds the liquidator has been able to recover from selling off VBS assets or recouping outstanding loan payments.
According to News24, these include corporate and municipal deposits while the SARB – which facilitated the repayment of the National Treasury-provided guarantee – would also be due a repayment from recovered funds.
The PA said about 90% of VBS depositors have been repaid.
‘The bulk of the depositors who had funds in VBS actually had very small amounts. That’s why we can comfortably say 90% of depositors have received the bulk of their funds,’ said Fundi Tshazibana, CEO of the PA.
VBS Mutual Bank was placed into final liquidation in November 2018 with Anoosh Rooplal appointed as its liquidator by the Master of the High Court.
Since the state-owned institution – implicated in looting orchestrated by its former chair Tshifhiwa Matodzi – did not have sufficient funds to repay depositors, National Treasury was forced to step in to help refund depositors.
Since this process kicked off prior to the creation of the Corporation for Deposit Insurance – established in 2023 but only became operational a year later – the liquidator relied on the state-provided guarantee to repay depositors up to an amount of R100 000.
Nedbank was appointed as the so-called bridge or repayment bank.
The PA said in its 2024/25 annual report that since the start of the liquidation process, Rooplal has been able to recover a net R730m for distribution among VBS’s remaining creditors, reports News24.
Collection efforts on outstanding VBS loans are still ongoing, while 29 criminal investigations have been initiated due to activities at VBS.
To date, five convictions have been secured, including VBS’ former chair.
KPMG – which was VBS’s auditor – also signed a R500m out-of-court settlement with Rooplal in early 2024, Tshazibana declined to comment on what the total outstanding amount owed to VBS creditors may be.
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.
