Vele offices raided by Reserve Bank
An investigation into the affairs of VBS Mutual Bank heated up yesterday with a mid-morning raid on the offices of Vele Investments in Sandton‚ Johannesburg.
Vele has a 53% shareholding in VBS Bank‚ which was placed under curatorship in March.
It is understood that the Reserve Bank obtained a warrant under the newly adopted Financial Sector Regulation Act.
Reserve Bank Governor Lesetja Kganyago announced in March that VBS would be placed under curatorship given its severe liquidity crisis.
This was in the interests of the public and to protect depositors‚ he said.
Shortly before 11am, a small group of around 10 men arrived at Vele House on Grayston Drive.
After a few minutes, they were granted access and disappeared into the building.
The Reserve Bank was not immediately available to comment.
Vele Investments abandoned a high court challenge to the curatorship last month.
This came after the resignation of Vele chairman Tshifhiwa Matodzi in March‚ a day after Kganyago’s announcement of the curatorship.
“He resigned from Vele Investments for personal reasons and the company welcomed his resignation‚” Vele spokesman Ndivhuwo Khangale said at the time. Vele is VBS’s largest shareholder. Last month, the Reserve Bank announced the appointment of Advocate Terry Motau SC to conduct a forensic investigation into the affairs of VBS.