Ex-VBS executive allegedly tried to cover up crisis

THE former VBS Mutual Bank chief operations officer allegedly tried to solve the liquidation problem at the bank by using cover-up methods and fraud, the South Gauteng High Court in Joburg heard .

Senior counsel Michael Antonie, for the curator in the VBS Mutual Bank matter, said Robert Madzonga paid R18million into the bank’s account on February 16 and 17.

Antonie made his arguments during an application to have the estate of Madzonga provisionally sequestrated.

He questioned why Madzonga was solving a bank liquidity crisis in his personal capacity, while Vele Investment Holding was the major shareholder and could have dealt with it.

Madzonga is also the group executive at Vele Investments.

Antonie said Madzonga was allegedly desperate and wanted to ensure that the crisis at the bank remained uncovered and he used his own money.

“It’s impossible that Madzonga did not know the state of VBS Mutual Bank…

“We are dealing on a fraud on a massive scale. Let’s not get too technical,” said Antonie.

Antonie said there was about R63m in a Vele bank account and questioned why Madzonga did not used that money to deal with the liquidation problem. “Because it’s a fictitious deposit,” he said. On Tuesday, provisional sequestration orders were granted against Tshifiwa Matodzi, the former chairman of VBS’s board of directors and the director and chairman of Vele Investments, as well as Phillip Truter, the bank’s chief financial officer; and Phophi Mukhodobwane, VBS’s general head of treasury and capital management.

It emerged in court yesterday, that Mukhodobwane wanted to appeal against the provisional sequestration.

Andile Ramavhunga, VBS’s chief executive, may also be placed under provisional sequestration.

This was argued in court on Tuesday and a judgment is yet to be delivered.

Curator Anoosh Rooplal wants Ramavhunga to be sequestrated for orchestrating what is described as a “fraudulent scheme of epic proportions”.

At least R1.5bn was allegedly looted from VBS by executives who lived lavishly and bought, among other items, luxury vehicles.

The court heard that Madzonga’s assets included two Porsches, a Rolls Royce, an Audi R8 and two immovable properties.

The sequestration proceedings continue. – African News Agency (ANA)

WE ARE DEALING WITH FRAUD ON A MASSIVE SCALE. LET’S NOT GET TOO TECHNICAL