The end of the road for VBS Mutual Bank?
Nov 13th, 2018 Sandisiwe 996 Views
The High Court in Pretoria ordered the final liquidation of VBS Mutual Bank in a court application which lasted for less than 10 minutes. The court ruling in favour of Prudential Authority and the Mahikeng Local Municipality followed an urgent court application initially sought by Prudential Authority on October 29.
The judge ordered the immediate implementation of the liquidation order. Prudential Authority’s CEO Kuben Naidoo lodged an urgent application in the High Court requesting the urgent liquidation of VBS as it “is hopelessly insolvent, both factually and commercially”.
Naidoo in his liquidation application included “The Great Bank Heist” report compiled by Advocate Terry Motau SC. The report detailed the massive scale of fraud and corruption which took place since 2015 and allegedly masterminded by some of the shareholders and senior officials of the bank. They looted almost R2 billion and the majority of the funds were deposited by several municipalities in Limpopo, North West and Gauteng.