The Reserve Bank placed VBS under curatorship in March amid concerns over its liquidity. The VBS curator in April withdrew the audited annual financial statements of the bank for the year ended March 31, 2017, saying they contained material misstatements “and are no longer considered to be reliable”.
Speaking at the release of the bank supervision department's annual report yesterday, Naidoo said the Reserve Bank’s confidence that it could save VBS had declined after it discovered that VBS liquidity was far worse than it had previously envisaged. He said the Reserve Bank was taking steps to rescue the lender.
“We have had to put in place very tough deposit limits. In April, we instituted a forensic investigation under the chairpersonship of Terry Motau, SC, to investigate whether there is fraud in this bank and that investigation is still under way. It is certainly our intention to continue with the curatorship and to protect depositors’ interest,” said Naidoo.
The Reserve Bank yesterday said it had imposed administrative penalties amounting to R77.5 million to VBS and the Johannesburg branch of the China Construction Bank Corporation for failing to comply with the Financial Intelligence Centre Act (Fica).