Screengrab of the VBS Mutual Bank website
Screengrab of the VBS Mutual Bank website

NPA and Hawks to brief media as reports of VBS Bank arrests emerge

By Staff reporter Time of article published Jun 17, 2020

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Johannesburg -  The National Prosecuting Authority (NPA) is expected to provide feedback on its investigations into high profile cases on Wednesday afternoon as reports emerge that several VBS Bank executives have been arrested as part of the Hawks and NPA investigations into the looting of the bank.

It is being reported that the Hawks and the NPA conducted searches and arrested several high profile individuals who served as executives at the bank and were allegedly responsible for monies looted from VBS over several years.

Amabhungane reports that those arrested in the raids on Wednesday morning include VBS Bank former chairperson Tshifhiwa Matodzi, chief executive Andile Ramavhunga and treasurer Phophi Mukhodobwane. The news site also reports that individuals outside the organisation have also been arrested.

News of VBS bank's collapse came to light following the publishing of a report commissioned by the SA Reserve Bank in 2018.

The investigation was led by Advocate Terry Motau which found that close to R2 billion was looted from the bank with the help of executives. The report titled "The Great Bank Heist" was released in October 2018.

VBS Bank was formed to be a savings facility years ago and saw many individuals channel their savings to the bank. This included pensioners who had their lifesaving disappear after news of the looting came to light. Various municipalities across the country that had illegally channelled funds to the bank had also lost out of millions.

The billions stolen were channelled to various bank accounts and saw various politicians allegedly benefit from the looted funds. Some of those alleged benefactors were ANC politicians and the EFF has also been accused of corruptly benefiting from the looting.

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