Damning claims about VBS looters

THE curator of VBS Bank has lodged a High Court bid to go after the personal assets of the executives accused of looting VBS Mutual Bank of more than R1.5 billion.

In the court papers it is alleged that some of the executives lived the lives of billionaires, raiding depositors’ money to purchase mansions, sports cars and even a helicopter.

In the 87-page court application, it is stated that the biggest victims of the large-scale “fraudulent scheme” were 21 municipalities, community members and businesses in Venda and the Public Investment Corporation.

Curator Anoosh Rooplal has brought an urgent application in the South Gauteng High Court to have Andile Ramavhunga, the bank’s chief executive, sequestrated.

Rooplal said the move to urgently sequestrate Ramavhunga was “due to the fraud he, together with Vele Investments and others, have perpetrated on VBS, its depositors and local municipalities”.

Ramavhunga was the prime target of the sequestration bid because he still enjoyed some control over the bank’s assets.

He also had in his possession properties and cars bought with millions of rand allegedly stolen from the bank.

But Rooplal made it clear in his sworn affidavit that Ramavhunga was not the only executive targeted for sequestration.

The curatorship also intended to secure assets in possession of VBS’s largest shareholder, Vele Investments, a company that received most of the siphoned money.

“An application for Vele’s winding up will be brought simultaneously with the provisional sequestration applications of its controlling minds, Tshifhiwa Matodzi, Robert Madzonga and Ramavhunga.

“Further simultaneous sequestration applications will be brought against Phillipus Nicholas Truter and Phopi Londolani Mukhodobwane.”

Rooplal alleged in his affidavit that the five were the masterminds behind the plot to steal money deposited into VBS.

He said the findings of his own investigation had been “fortified” by a probe conducted by Terry Motau, SC, assisted by Werksmans Attorneys.

“More egregious than the perpetration of a fraudulent scheme of such enormity is that the scheme was orchestrated by the highest-ranking officials at VBS.

“The scheme was devised and executed by Matodzi, Ramavhunga, Truter, Mukhodobwane and Madzonga,” Rooplal said.

He said the executives ran their “fraudulent scheme of epic proportions” over the course of a year, and used the loot to live the “high life” at the expense of depositors.

Bribe

They paid themselves hefty bonuses, too, while some of the stolen funds were allegedly used to bribe officials of public entities that VBS sought to bring into its fold.

“This they used to fund their lifestyles, purchase immovable property, buy high-end vehicles and take up shares in other entities,” Rooplal said.

Reserve Bank governor Lesetja Kganyago, who placed VBS under a curator when its liquidity crisis worsened, this week said the executives were believed to have stolen 75% of its assets.

Rooplal said: “In view of the pervasive nature of the fraud, the amount involved, and the ongoing use by Ramavhunga of the ill-gotten gains, it is necessary for Ramavhunga’s estate to be sequestrated and be placed in the hands of a trustee.”

Sequestration against the five executives would see them surrendering their estates and financial affairs to a trustee. Their bank accounts would be frozen and assets seized.

Ramavhunga declined to comment.