The North Gauteng High Court has granted application for the final liquidation of VBS Mutual Bank.
The Presiding Judge Johan Louw of the North Gauteng High Court has granted the Reserve Bank’s Prudential Authority and the Mahikeng Local Municipality application for the final liquidation of VBS Mutual Bank.
This followed Advocate Terry Motau’s finding of widespread looting to the tune of almost R2 billion at the bank and recommendation that it should be closed, as there is no opportunity for rescue.
The Reserve Bank claimed that the order to liquidate the bank was necessary, would be beneficial to the creditors of the bank, that it was in the interest of the public, and that VBS was “hopelessly insolvent”, both factually and commercially.
The next step is to appoint a liquidator to pursue the necessary civil and criminal proceedings to hold those accountable for the financial mismangement and to recover funds from recipients where transactions were found to be void or impeachable.
The Prudent Authority argued against calls by the government and some political parties that the bank be saved, saying that continued curatorship would not enable VBS to pay its debts or meet its financial obligations, let alone become a successful concern.
Judge Johan Louw said:
"I grant the final liquidation of the bank on the basis of facts brought before me.”