Parties want to revive collapsed VBS – Reserve Bank

The South African Reserve Bank received letters from interested parties who wanted to revive the collapsed VBS Mutual Bank, it said.

This comes after a number of the bank’s executives and related parties appeared in court last month. They include VBS chair Tshifhiwa Matodzi, the bank’s chief executive officer, Andile Ramavhunga, and former general manager of treasury Phophi

Mukhodobwane.

Also in the dock were non-executive directors Ernest Nesane and Paul Magula, both from Public Investment Corporation, and Phalaphala Ramikosi, who was the police’s former chief financial officer (CFO), as well as KPMG accountant Sipho Malaba. VBS CFO Philip Truter appeared on a later date.

In 2018, and following a liquidity crisis at VBS, Sarb appointed a team of forensic investigators to find out what had gone wrong.

The ensuing report, titled VBS Mutual Bank – The Great Bank Heist, revealed “a wide range of criminality in the conduct of the affairs of VBS”.

On Friday, Sarb said it and the Prudential Authority (PA) “have and will continue to engage with communities and other interested parties seeking to enter the financial sector.

“We do, however, wish to point out that VBS Mutual Bank was placed into liquidation by the high court on 13 November 2018.”

As a result, VBS is being liquidated and the collection on loans is continuing. Assets are also being sold to recover monies owed to depositors.

The Sarb added that it has provided R261 million, covering over 97% of retail depositors who originally deposited with VBS.

To date, more than 98% of deposit balances guaranteed by government have been claimed.

Since VBS’s previous licence was suspended, it cannot be revived in its old form, Sarb added.

“If anyone wishes to apply for a new mutual or commercial banking licence, they are welcome to do so,” the Reserve Bank said. – Citizen reporter