QUESTION FOR WRITTEN REPLY
QUESTION NUMBER: 2150 [NW2470E]
DATE OF PUBLICATION: 14 OCTOBER 2016
2150. Mr K J Mileham (DA) to ask the Minister of Finance:
Whether any municipalities have (a) deposited funds with and/or (b) made loans to VBS Mutual Bank in the past five municipal financial years; if not, in each case, what is the position in this regard; if so, in each case, (i) which municipality (aa) deposited funds with and/or (bb) made loans to the specified bank, (ii) when was each (aa) deposit and/or (bb) loan made and (iii) what was the amount in each case?
(a) According to National Treasury’s database of Section 71 reports submitted by the municipality as at 30 June 2016, investments with VBS Mutual Bank were made by the following municipalities:
i. West Rand District Municipality
ii. Capricorn District Municipality
(b) Municipalities do not make loans to financial institutions and /or banks as a standard practice as they are not allowed to lend money to financial institutions. There is also no municipality that has a primary bank account with VBS Mutual Bank.
(c) There are no other municipalities that have invested with VBS Mutual Bank according to the National Treasury’s database.
(d) According to National Treasury’s database of Section 71 reports submitted by the municipality as at 30 June 2016, investments with VBS Mutual Bank were made by the following municipalities:
Issued by Parliament, 10 November 2018
QUESTION FOR WRITTEN REPLY
QUESTION NUMBER: 1967 [NW2278E]
DATE OF PUBLICATION: 16 SEPTEMBER 2016
1967. The Leader of the Opposition (DA) to ask the Minister of Finance:
(a) When did the Public Investment Corporation (PIC) make the first purchase of shares in the VBS Mutual Bank and (b) what is the current monetary value in Rands of the PIC’s 25,26% stake in the specified bank? NW2278E
The Public Investment Corporation (PIC) have submitted the following information:
(a) VBS Mutual Bank was established in 1982 and traded as the Venda Building Society. The Government Pension Fund of Venda was a shareholder in the Venda Building Society. The Public Investment Corporation (PIC) became a shareholder in VBS Mutual Bank (VBS) with the enactment of the Government Employees Pension Law, 1996 (Act 21 of 1996) (GEPF Law) on the 1st of May 1996. Section 14 of the GEPF Law provided for the discontinuance of inter alia the Government Pension Fund of Venda as well as the Government Superannuation Fund of Venda and for these funds to be amalgamated into the Government Employees Pension Fund.
(b) As at 31 March 2016, the PIC had a 8.5% equity stake in VBS which was valued by external valuators at R4.123 million. The shareholding of 8.5% was due to a rights issue by VBS in which the PIC has not participated as at financial year end. The PIC has since resolved to participate in the rights issue, which will result in the PIC restoring its equity stake to 25.26%. The value of this equity stake will be approximately R12.369 million.
Issued by Parliament, 30 November 2018