JOHANNESBURG – The curator of VBS Mutual Bank, Anoosh Rooplal, said on Thursday that unused and redundant assets of the embattled bank will be sold and all proceeds will be to the benefit of the creditors of the bank.
The creditors include municipalities, trade creditors and the remaining retail depositors who currently have over R100 000 deposited in the mutual bank.
The South African Reserve Bank placed VBS Mutual Bank under curatorship in March after it was found that the bank was facing a liquidity crisis. Last week, an explosive report by Advocate Terry Motau revealed how almost R2 billion in bank's coffers was looted by at least 53 individuals and entities over the last few years.
Rooplal said he had to reduce all non-critical costs of the embattled bank by closing branches with low traffic, including the Thavhani, Johannesburg, Durban and the Sibasa branches, in a bid to align cash inflows with the cash outflows.
VBS has only two remaining branches, Thohoyandou and Makhado have been reduced in size after 94 staff members retrenched.