DA to lay fraud, racketeering and corruption charges against VBS executives
The DA will lay fraud, racketeering and corruption charges against the executives of VBS Mutual Bank following allegations that the bank’s directors and Vele Investments, its shareholder, had defrauded the bank of more than R1.5 billion.
We had previously written to the Registrar of Banks, Mr Kuben Naidoo, asking that he urgently establish a Commission of Inquiry into VBS and municipalities that illegally deposited funds with the bank. We are pleased that the probe has been initiated.
We also called for an investigation by the South African Police Service into whether the bank’s directors paid millions of rands to Public Investment Corporation and Passenger Rail Agency of SA executives, and politicians, to facilitate deposits of public funds with the bank.
Residents of several municipalities now face the prospect of having no access to basic services as a result of this illegal depositing, mismanagement and plundering of public monies. It is therefore necessary that the affairs of the institution and the municipalities involved are probed in the interest of citizens and ensuring service delivery.
Despite the DA and National Treasury warning the municipalities against the illegality of depositing money with VBS, some municipalities proceeded to deposit money with the bank.