Image via: Twitter
Image via: Twitter
Mkhwebane, in her final report on investigations for 2019, said that there are challenges regarding the crisis between the South African Reserve Bank (SARB) and the VBS Mutual Bank.
Mkhwebane said during her briefing on Thursday that the investigation into the Reserve Bank and VBS is pending and findings on the matter can therefore not be released.
Mkhwebane questions the role of the Reserve Bank in the VBS scandal:
“There is also a pending investigation in the role of the SA Reserve Bank in the whole VBS saga. We are experiencing challenges with this one because SARB seems to believe that we do not have jurisdiction over it.”
“They seem to have misinterpreted the ConCourt judgment on personal costs,” she added.
“The SARB does not comment on ongoing investigations and finds it surprising that the public protector finds it necessary to address these matters publicly, while an investigation is ongoing.”The South African Reserve Bank
A liquidity crisis began at the start of 2017 when VBS Mutual Bank’s top-level failed to effectively manage rapid expansion from a period of growth.
They were placed under curatorship in March 2018, with an independent regulatory body appointed to investigate the matter. A total of 53 perpetrators were said to have stolen R1.894-billion from VBS.
The brother of EFF deputy leader Floyd Shivambu, Brian Shivambu, was said to have received R16-million in the great South African sell-off.
ANC Limpopo treasurer Danny Msiza was also reported to be the kingpin behind the operation, influencing municipalities to illegally deposit funds into VBS Mutual Bank.
The bank has had to retrench 94 staff members, with just 26 remaining in their positions. It’s been an annus horribilis for VBS Mutual Bank. The remaining staff will now operate from one central location at their headquarters.
Mkhwebane said some cases exceeded the two-year investigation period and that she could not confirm when the investigations would be completed. However, she said she was hoping it would be finalised in 2020.
“#PublicProtector says it’s trying to find out what role the @SAReserveBank played in ensuring a collapse of a bank is avoided. #PP says they’ve proposed a meeting but they have not received any cooperation & they willing to give SARB a chance to assist.”
“#702Breakfast Rooplal’s findings included that the R1.8bn held in VBS’s suspense accounts “may be a fictitious creation of deposits on the banking system”, there were possible ‘fraudulent transactions’ designed to siphon money from the bank. How did this happen under the SARB?”
“Zuma and Guptas were never exonerated by any official investigation but we know for a fact that Malema and EFF are not mentioned in the 53 names released by SARB report on VBS.”