The ANC was at the centre of the VBS Mutual Bank heist
Note to Editors: The following speech was delivered today in the National Assembly by DA Shadow Minister of Finance, David Maynier MP.
1. Introduction
We know that the black, green and gold of the governing party was at the centre of the “grand bank heist” at VBS Mutual Bank.
And we know that the kingpin of commissions was Danny Msiza who was the provincial treasurer of the governing party in the Limpopo Province.
We know this debate is a desperate attempt to divert attention away from the role of the governing party in the “grand bank heist” at VBS Mutual Bank.
2. “Scheme of Looting”
We now know that VBS Mutual Bank was turned into a “washing machine” converting municipal deposits, that were illegally obtained into “gratuitous payments”, that were used to finance the lavish lifestyles of the looters at VBS Mutual Bank.
We know the “looting scheme” was:
- greased by fixers paying “commissions” to secure municipal deposits;
- greased by directors paying “bribes” to buy silence; and
- greased by auditors benefiting from “facilities” to cook the books.
There were too few people like Mariette Venter and Yvonne Page, who had the courage to stand up and say “no” to the looters at VBS Mutual Bank
The victims of the grand bank heist at VBS Mutual Bank were, of course, the poor depositors, stokvels and burial societies who entrusted their savings to VBS Mutual Bank.
3. “Hidden from View”
The final report on the “grand bank heist” at VBS Mutual Bank, prepared by Advocate Terry Motau SC, is a masterpiece of forensic work and writing.
The final report claims that the looting was “hidden from view” and that had the truth been told the regulators would have been able to act and the looting could have been stopped.
However, it is simply not true that the “looting scheme” at VBS Mutual Bank was “hidden from view”.
The fact that VBS Mutual Bank was taking illegal deposits from municipalities was known, and was in the public domain, from at least 14 October 2016.
Which is more than a year before VBS Mutual Bank was placed under curatorship by the South African Reserve Bank.
The National Treasury and the South African Reserve Bank, did take action, sending an e-mail advising municipalities that funds could not be deposited at VBS Mutual Bank.
The effect, believe it or not, was this: VBS Mutual Bank -
- tried to interdict National Treasury from engaging with municipalities; and
- accepted R 1 billion more in deposits from municipalities, after receiving the warning from National Treasury.
We have to be clear that the reason VBS Mutual Bank was placed under curatorship was that it became a “scheme of looting” that not only falsified its financial statements, but also falsified its reports to the regulators, with the knowledge of the external auditors, who were receiving “gratuitous payments”.
However, it appears that, although National Treasury and the South African Reserve Bank acted, they acted too late, only clamping down several months after it became clear that municipalities were making illegal deposits at VBS Mutual Bank.
That is why we need an independent inquiry into the action taken by the National Treasury and the South African Reserve Bank after they became aware that municipalities were making illegal deposits at VBS Mutual Bank.
4. Conclusion
The real tragedy in the end, of course, is that when it comes to the “grand bank heist” at VBS Mutual Bank the looters are likely to get away with their loot because the governing party has destroyed the capacity of the state to investigate and prosecute serious commercial crime in South Africa.
Issued by the DA, 23 October 2018
