VBS Curator succeeds with provisional sequestration

By Staff Reporter Time of article published Aug 3, 2018

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CAPE TOWN - Acting deputy judge-president Moroa Tsoka has granted provisional sequestration orders on Mr. Andile Ramavhunga, VBS's Chief Executive Officer and Mr. Robert Madzonga, VBS’s previous chief operations officer and group executive officer of Vele Investments, in the South Gauteng High Court.

This follows Tuesday's High Court ruling, where Judge Tsoka granted provisional sequestration orders on VBS Executives including Mr. Tshifhiwa Matodzi, Mr. Phillipus Truter and Mr. Phopi Mukhodobwane. Vele Investments, VBS’s alleged main shareholder which according to the Curators founding affidavit benefited some R745 million from alleged fraud carried out by bank executives, was also liquidated.

In the judgment, Judge Tsoka said that Mr Ramavhunga's explanation of a receipt of R15 million was false and a lie and that the proceeds were probable fraud.  He further found that Mr.Madzonga's claim that receipt of R4.5million as a promotion bonus was a lie and an attempt to explain the inexplicable

The judge went further to say that "the interest of justice looms large in this matter and that VBS was stripped of its assets that belong to poor people. Fraud was perpetrated by the very people that were placed in the position to look after these people's interests. It was motivated by greed, where enough is never enough".

The judge cited a quote from the novel, Atlas Shrugged: "when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you – when you see corruption being rewarded and honesty becoming a self-sacrifice – you may know that your society is doomed".

"Luckily", the Judge concluded " it is not 1956 but 2018, and the constitution rules supreme and justice is done between men".

Rooplal noted: "This week's outcome in the High Court is a 100% strike rate for the curatorship. It is a further step to the potential recovery of some of the R1.5 billion that rightfully belongs to the depositors of VBS".

Depositors who stand to benefit from the recovery of these assets include municipalities who have deposits with VBS, trade and corporate creditors of the Bank.  Retail depositors whose deposits are in excess of R100 000 in VBS also stand to benefit.


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