CAPE TOWN - The South African National Civic Organisation (Sanco) on Monday commended VBS Mutual Bank curator Anoosh Rooplal for exposing “massive fraud” allegedly committed by directors of the institution, as well as its majority owner Vele Investments.

VBS Bank has come under inspection after it was revealed that the bank was allegedly looted of more than R1.5 billion by its own management.

The civic group applauded Rooplal for lodging an application to liquidate Vele and the steps being taken to sequestrate the bank’s executives.         

“Law enforcement agencies must expand the probe to investigate whether former North West Premier Supra Mahumapelo, officials in his administration, as well as municipalities in the province and across the country which had invested in VBS received bribes,” said Sanco spokesperson Jabu Mahlangu.

Mahlangu said that recouping monies siphoned from the bank will safeguard the interests of investors.

"The R1,5 billion that was allegedly withdrawn through fraudulent transactions by VBS directors must be recovered with interest and those implicated be held accountable," he said

He called for criminal charges to be instituted against the VBS executive, politicians and senior officials from the Public Investment Corporation (PIC), Passenger Rail Agency of SA (Prasa) and everyone implicated in the alleged fraud.

Mahlangu urged the South African Institute Chartered Accountants (Saica) to investigate the KPMG auditor who signed off VBS’s books last year despite the massive fraud.

African News Agency (ANA)