PRETORIA – The Public Investment Corporation (PIC) welcomes the release of the report by Advocate Terry Motau into the collapse of VBS Mutual Bank.
Titled, “The Great Bank Heist”, this report provides a clear account of how a group of greedy and callous individuals brought a bank, which could have grown into one of the largest black owned specialist banks in South Africa, to its knees. The PIC also notes the report’s recommendations regarding civil and other proceedings and, where these apply to the PIC, these will be considered.
The PIC has already taken the following steps in relation to its two delegated Directors on the Board of VBS Bank, Mr Ernest Nesane and Mr Paul Magula.
- Both Messrs Nesane and Magula are no longer in the employee of the PIC. Mr Magula was dismissed for incompetence in April 2018 and Mr Nesane resigned two days after he testified before Adv Motau. (Please see https://www.pic.gov.za/wp-content/uploads/2018/07/PIC-Executive-Head-resigns-forensic-investigator-to-be-appointed-on-VBS-Bank-investment.pdf)
- The PIC has applied for both Messrs Nesane and Magula to be debarred in terms of section 14 of the Financial Advisory and Intermediary Services Act, 2002. The Financial Sector Conduct Authority has granted the application and debarred these two individuals;
- The PIC is in the process of applying to have them declared as delinquent directors in terms of the Companies Act of 2008;
- The PIC, in consultation with the Prudential Authority, will lay criminal charges against both Magula and Nesane; and
- In relation to Mr Nesane, the PIC is in the process of applying to have him struck from the roll of attorneys.