Bank to contest quashing of VBS report on Msiza
The Reserve Bank’s Prudential Authority (PA) said on Wednesday it would appeal against a judgment setting aside advocate Terry Motau’s findings on ANC politician Danny Msiza in his explosive report on the looting that collapsed VBS Mutual Bank.
The authority, which is responsible for regulating banks, insurers, co-operative financial institutions and financial conglomerates, said a senior counsel had advised there were good grounds to appeal against the judgment. Based on that advice, the authority said it would file an application for leave to appeal.
In his investigation, Motau found that Msiza had used his political influence as ANC provincial treasurer in Limpopo to coerce municipal officials into unlawfully investing millions of rand in the bank.
“It is clear that Msiza intervened on numerous occasions when his political influence was required,” Motau said.
However, Pretoria high court judge Vivian Tlhapi found that Motau had denied Msiza, reportedly a key ally of ANC secretarygeneral Ace Magashule, “procedural fairness” by not hearing his side of the story before finding that he was a “kingpin” in the VBS Mutual Bank looting.
Motau’s adverse findings Motau on Msiza were thus set aside.
As part of his efforts to defend his findings, Motau and Werksmans Attorneys, which worked with him to investigate the VBS Mutual Bank looting, had attached e-mails, WhatsApp discussions, interviews under oath, bank statements and documents detailing Msiza’s wrongdoing.
In her judgment, Tlhapi ruled that she was “not called upon to evaluate the truth” of this evidence “or to consider the justification for the contents of the report”. Instead, she found that Motau’s failure to afford Msiza the right to “procedural fairness” was unlawful and unconstitutional.
Msiza and former Vhembe mayor Florence Radzilani, who were suspended from their positions soon after the Motau report came out, had already been reinstated by the party before the court judgment.
Nine people are facing prosecution for their alleged roles in the looting of the bank.
The group, which includes VBS Mutual Bank’s top executives, is facing altogether 47 counts including of racketeering, theft, fraud, corruption and money laundering.
JUDGE FINDS FAILURE TO AFFORD DANNY MSIZA THE RIGHT TO PROCEDURAL FAIRNESS WAS UNLAWFUL AND UNCONSTITUTIONAL
The National Prosecuting Authority (NPA) said, however, that Tlhapi’s judgment would have no effect on the criminal cases spawned by Motau’s investigation. NPA spokesperson Sipho Ngwema said Msiza was not one of the nine accused in the prosecution.
Though the NPA may have used Motau’s report as a starting point in the development of its case, the state had obtained its own evidence before pursuing the prosecution, Ngwema said.
The NPA said that the former CFO of VBS Mutual Bank, Philip Truter, was planning to plead guilty to the charges.