Sunday 08, July 2018 by Bloomberg

VBS paid officials for quick funding, Times Says

 

The South African Reserve Bank in May, said it would start a forensic investigation after some VBS depositors’ funds could not be traced. 

  

South African lender VBS Mutual Bank, which collapsed in March, paid senior officials at the Public Investment Corp. to fast-track funding for the lender, the Johannesburg-based Sunday Times said, citing an affidavit by the bank’s former head of treasury Phophi Mukhodobwane.

The bank’s former treasurer was instructed to deliver a suitcase filled with ZAR 5 million to a senior executive at PIC, which manages state-worker pension funds, to ensure receiving about ZAR 2 billion ($150 million) just before the bank was placed under curatorship, according to the newspaper.

VBS and PIC did not immediately respond to requests for comment on the newspaper report.

The South African Reserve Bank sought to rescue VBS, one of the country’s smallest lenders, in March.

An update on the investigation will be offered on Monday.

 

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