Liquidation order for VBS

The High Court in Pretoria has granted an urgent order for the final liquidation of VBS Bank.

Judge Johan Louw took just a few minutes to grant the order, finally winding up VBS, after an application by the SA Reserve Bank’s Prudential Authority (PA) which stated the bank was hopelessly insolvent and beset by massive fraud. The application was not opposed.

The PA recommended the appointment of Anoosh Rooplal as the bank’s liquidator. The PA said in court papers it was not in the interests of the depositors and the public for the status quo to remain. “VBS must be wound up on an urgent basis and a liquidator appointed so the necessary civil and criminal proceedings can be pursued to hold those accountable for the demise of VBS and to achieve as great a recovery as possible for the creditors.

“The PA is of the view the curatorship must now be terminated and VBS must be placed in final winding-up. VBS is hopelessly insolvent and massive frauds have been perpetrated against it,” the PA said.

A damning report by advocate Terry Motau, appointed to investigate the bank’s collapse, detailed looting at VBS of more than R1.8 billion and identified roleplayers from the ANC and the Economic Freedom Fighters, bank executives and a former partner of KPMG in its collapse.