VBS beneficiary in court as liquidator demands millions used to buy luxury pad, Mercedes Benz

Screengrab: www.vbsmutualbank.co.za

Screengrab: www.vbsmutualbank.co.za

Published Nov 19, 2021


Johannesburg - The liquidator of the VBS Mutual Bank wants its former spokesperson to repay more than R8.3 million the doomed financial institution loaned him to buy a luxury house and a Mercedes Benz.

Liquidator Anoosh Rooplal has hauled Ndivhuwo Khangale, who was the spokesperson of VBS and its majority shareholder Vele Investments, and his wife Azwinndini to the South Gauteng High Court to force them to repay two loans.

Khangale received more than R16.8m of the funds looted from the bank, which was uncovered by the investigation commissioned by the SA Reserve Bank’s Prudential Authority and conducted by Advocate Terry Motau SC.

The probe identified Khangale as being among the biggest recipients, directly and indirectly, of the gratuitous payments made to 53 individuals and companies.

Rooplal wants Khangale to repay almost R5.8m plus 10.5% interest for the mortgage bond the couple obtained from VBS to finance the purchase of their property in Featherfalls Estate, Mogale City.

They were in arrears by almost R1.5m when Rooplal instituted the legal action last year. Khangale has already been ordered to return the Mercedes Benz and repay more than R2.55m he received to buy the car.

Court papers filed at the South Gauteng High Court show that Khangale made his income from a contract he had with VBS, but which was later cancelled by Rooplal after the financial institution was liquidated in 2018.

As a result, the couple fell into arrears on their repayments.

On November 5, Acting Judge Stuart Wilson postponed the matter sine die (indefinitely) and granted Rooplal leave to supplement his papers and to amend his notice of motion to incorporate relief declaring the mortgaged property in Featherfalls Estate specially executable.

He also granted the couple leave to supplement their answering papers in response to Rooplal’s supplemented relief by no later than 15 days from the date on which his supplemented papers were served on them.

The judge said that Khangale, shortly before the matter was heard, made an application in terms of the National Credit Act to have himself declared over-indebted, but indicated that his debt review application would affect Rooplal’s right to continue with the enforcement of the mortgage credit agreement.

In April, Acting Judge Ronée Robinson ordered the cancellation of the vehicle finance agreement between VBS and Khangale. He was also ordered to return the Mercedes Benz vehicle and to pay more than R2.55m plus interest.

Acting Judge Robinson found that Khangale was reliant on payment from VBS, and that its failure to pay him meant he was unable to settle his debts.

“I am currently unemployed and my company has not had any contract since VBS's liquidation. I am therefore unable to make any payments at the moment, and was hoping that should VBS pay some money owed to my company, I will also be able to start servicing my loans. I am committed to paying all money owed to VBS by myself and my wife Constance,” he promised Rooplal.

Meanwhile, Rooplal has given VBS’s creditors until Friday to inspect the first liquidation and distribution account in terms of which a dividend is payable upon its confirmation by the Master of the High Court, according to the Companies Act of 1973.

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Political Bureau

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