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Johannesburg - The South African Reserve Bank (SARB) on Friday announced it had commissioned a forensic investigation into the affairs of VBS Mutual Bank. 

Advocate Terry Motau SC has been appointed as the investigator. 

The Reserve Bank in a statement said the investigation comes after the findings made by Anoosh Rooplal, on behalf SizweNtsalubaGobodo Advisory Services (Pty) Limited, recommended that an independent review of the business conduct of VBS be undertaken.

SizweNtsalubaGobodo had been appointed the curator of VBS bank by the Finance minister.

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"After a thorough assessment of VBS, Rooplal recommended that an independent review of the business conduct of VBS be undertaken."

"Consequently, the Deputy Governor of the South African Reserve Bank and Chief Executive Officer (CEO) of the Prudential Authority (PA)[1], Kuben Naidoo, has appointed Advocate T Motau SC as an investigator in terms of section 134 of the Financial Sector Regulation Act 9 of 2017 to conduct a forensic investigation into the affairs of VBS."

The primary objective of the investigation will be to establish whether:

* Any of the business of VBS was conducted with the intent to defraud depositors or other creditors of the bank, or for any other fraudulent purpose;

* VBS’s business conduct involved questionable and/or reckless business practices or material non-disclosure, with or without the intent to defraud depositors and other creditors; and

* There had been any irregular conduct by VBS’s shareholders, directors, executive management, staff, stakeholders and/or related parties.

Naidoo would then, based on the findings of the forensic investigation, take appropriate follow-up action, SARB said.