ANC Limpopo vows to fight for 'resuscitation' of #VBSMutualBank

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Picture: Screengrab

Published Oct 18, 2018

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Johannesburg - The ANC in Limpopo says it plans to work with stakeholders to fight for the '"resuscitation" of the Venda Building Society (VBS) following a report that detailed widespread looting at the bank. 

The ANC provincial executive committee (PEC) in Limpopo held a meeting on Wednesday which focused solely on the VBS scandal. 

In a report released last week, which was commissioned by the SA Reserve Bank, it was found that 53 people received various illegal payments from VBS over a couple of years. The payments amounted to R 1.89 billion. 

These illegal payments had placed depositors’ monies at risk. 

Advocate Terry Motau, who headed up the investigation into the bank, said in the report titled “The Great Bank Heist”, that it was unlikely that the bank could be saved.

The ANC Limpopo deputy chairperson Florence Radzilani and the provincial treasurer Dan Msiza were named in the report. 

Radzilani said she was seeking legal advice on the matter. The ANC has been under public pressure to come up with plans how it will deal with the scandal. 

The ANC top six met with ANC Limpopo leadership on Monday. 

In a statement released following the PEC on Wednesday, the provincial secretary Soviet Lekganyane said the party sympathised with the Vhembe community, which was hardest hit by the scandal as most of the municipality's cash was deposited into VBS.

Lekganyane said the party would not tolerate corrupt behaviour from its members regardless of the leadership position they held.

The party was "irritated" that the province lost over a billion rands due to the scandal, which it said was caused by individual municipalities and officials. 

"Consequently the PEC further resolved to mandate all ANC municipal councils affected by the VBS matter, the provincial treasury and Cogta to implement appropriate corrective measures with immediate effect. They must ensure that there is prompt consequence management by the end of October," said Lekganyane. 

The PEC also said the bank should be resuscitated as it's a black-owned bank with a critical role to play in BBEE. 

VBS was brought into the spotlight when it faced a liquidity crisis earlier this year and was eventually placed under curatorship by SARB. 

The EFF made similar calls for the bank to be saved.

The party made this call while it also faced backlash over its deputy president Floyd Shivambu be accused of pocketing funds from the bank. 

Brian Shivambu, Floyd's younger brother, is alleged to have received R16 million from VBS. The Daily Maverick reported that the EFF had received R1.3 million of those funds while Floyd Shivambu received R10 million of those funds. 

The brothers have denied receiving payments from the bank.

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Related Topics:

#VBSBankHeist