SAFTU condemns looting of money in VBS
4 July 2018
The South African Federation of Trade Unions is angered that once again workers and the poor are set to be the main victims of the collapse of the Venda Building Society Mutual Bank (VBS).
The Hawks are now investigating allegations of fraud and corruption at the bank. Five dockets have been opened and will be investigated by its Serious Corruption Investigation unit.
At first VBS appeared to be a runaway success. Its financial report for 2017 revealed a big growth in total assets. From just R337m In 2015, they almost trebled to R1bn in 2016 and from there doubled to R2bn in 2017. Net profits rose from R1m in 2015 to R5.9m in 2017 while operating profit increased to R87m in 2017 from R28m in 2015.
But on 11 March 2018 SA Reserve Bank governor Lesetja Kganyago placed the bank under curatorship, after it experienced a severe liquidity crisis, which made it impossible for it to repay deposits by municipalities, amounting to R1.6 billIon, which the VBS had been lobbying them to entrust it with..