PRETORIA – Two former executives of the Public Investment Corporation (PIC), who served on the board of the VBS Mutual Bank, have been debarred by the Financial Sector Conduct Authority (FSCA).
This was revealed by the FSCA divisional executive for licensing and the business centre, Felicity Mabaso, during her submission to the PIC Commission of Inquiry. She said the PIC executives on the board were implicated in the VBS Bank saga, which raised a red flag and had to be debarred from VBS activities.
One of the implicated, former executive Paul Magula, who was the PIC’s executive head of risk and compliance, vehemently denied allegations that he participated in any illegal, fraudulent activities during his tenure as a VBS Mutual Bank board member.
Magula said in his recent appearance before the PIC Commission of Inquiry that it was an undeniable fact that he was a board member at VBS Mutual Bank for some time, as a shareholder representative of the PIC, when the bank began to have problems.
“Some of the things like, fictitious deposits, fraudulent withdrawals, bribes, that are said to have happened at VBS I got to know about when I went before the Prudential Authority’s forensic investigators. I am willing and ready to subject myself and co-operate with the law enforcement agencies,” he said.