VBS Mutual Bank logo.
PHOTO: ANA Reporter
VBS Mutual Bank logo. PHOTO: ANA Reporter

R104m from VBS was return on investment – FDC

By Getrude Makhafola Time of article published Oct 17, 2018

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JOHANNESBURG – One of the alleged looters of the VBS Mutual Bank, the Free State Development Corporation (FDC) which pocketed more than R104 million from the bank, said the money was a return on an investment.

"The records of the FDC show that an amount of R100 million was invested with VBS, the investment and interest thereon, amounting to R104 417 749 was repaid to FDC in four instalments, subsequent to the maturity date of investment," FDC executive Grace Shaba said in a statement on Tuesday.

"Of particular concern was that the FDC was not consulted (by VBS investigators) before the report was released, which could have clarified the issue."

The FDC was named as one of the 50 who "gratuitously" received cash from VBS over a three year period commencing from March 2015. 

The independent report commissioned by the SA Reserve Bank to probe the collapse of the mutual bank found that there was "wide scale looting and pillaging of the monies placed on deposit at VBS". The almost R2 billion monies looted were clients' life savings and deposits, including millions of rands deposited by municipalities.

On Tuesday, the Economic Freedom Fighters (EFF) defended its deputy president Floyd Shivambu, rubbishing reports that R10m of the R16m VBS cash that his brother Brian received was directed to Floyd, while the EFF benefited to the tune of R1.3m. The second in command for the red berets accused media of "propaganda machinery" against the EFF, adding that anyone who says he received the VBS loot "is mad".

The FDC said it would probe conditions around the VBS payment it received.

African News Agency (ANA)

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