South Africa: The Great Bank Heist - How VBS Bought the Silence of Two Key PIC Officials


While politicians used colourful rhetoric to iron out the VBS-creases in parliament and on the streets, the bank's administrators bought the silence of two PIC-officials tasked with safeguarding the fund manager's investment. This is the story about Dan Matjila's right-hand men - executive head for legal counsel, governance and compliance Ernest Nesane and executive head of risk Paul Magula - and how they personally benefitted from the VBS robbery.

Former Public Investment Corporation (PIC) officials Ernest Nesane and Paul Magula were bribed to "look away and not raise issues" while VBS Mutual Bank was being robbed into insolvency and the PIC defrauded.

Detail of how much their blinkers cost, and how the money was channelled to Nesane and Magula, is contained in an ancillary report to the forensic report The Great Bank Heist, penned by advocate Terry Motau and law firm Werksmans. The ancillary report focuses on the PIC and is dated May 2019.

Nesane and Magula's duty, as non-executive directors of VBS, was to guard the PIC's investment in the bank.

But they were handsomely rewarded to do exactly the opposite: Nesane received R16.64-million in cash payments and loans, while Magula pocketed R12.89-million.

In the process of compiling the...

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