13 November 2018

South Africa: High Court Orders Liquidation of VBS Bank

Photo: VBS Mutual Bank
The VBS Mutual Bank website (file photo).

The North Gauteng High Court has ordered the liquidation of VBS Mutual Bank, eNCA reports. This comes after an application by the South African Reserve Bank's Prudential Authority on 29 October went unopposed and follows the release of the scathing "Great Bank Heist" report by advocate Terry Motau and Werksmans Attorneys.

Presiding Judge JW Louw issued the order of liquidation, IOL reports, and called for the immediate implementation of it. Further, no parties opposed the application despite media reports to the contrary.

According to Business Day, Prudential Authority CEO Kuben Naidoo said in an affidavit that the bank was 'hopelessly insolvent, both factually and commercially', adding: "Despite the efforts of the curator, the vortex of the black hole created by the role-players named in the investigator's report has resulted in the disappearance of VBS's substratum and it being objectively impossible for VBS to achieve the purpose of its existence."

The Great Bank Heist Report found that at least R1.9-billion had been looted from the institution, largely by politicians. Official opposition party the Democratic Alliance subsequently called for lifestyle audits to be conducted on those implicated in the scandal.

More on This

Explainer - Lessons From the Collapse of a Small South African Bank

The South African Reserve Bank placed VBS, a small mutual bank, under curatorship in March this year against a backdrop… Read more »

See What Everyone is Watching

Copyright © 2018 allAfrica.com. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.