Johannesburg - It is the end of the road for VBS Mutual Bank after the High Court in Pretoria ordered its final liquidation in a court application which lasted less than 10 minutes.
The Presiding Judge JW Louw issued the order of liquidation after the parties including the Reserve Bank’s Prudential Authority and the Mahikeng Local Municipality had a prior agreement on the nature of the draft order sought.
The court ruling in favour of Prudential Authority and the Mahikeng Local Municipality followed an urgent court application initially sought by Prudential Authority on October 29.
Judge Louw instructed the immediate implementation of the liquidation order. No parties opposed the application despite media reports to the contrary.
Prudential Authority’s chief executive officer (CEO) Kuben Naidoo lodged an urgent application in the high court asking the court to urgently liquidate VBS as it “is hopelessly insolvent, both factually and commercially”.