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Parliament - The board of the Public Investment Corporation (PIC) has directed that criminal charges be brought against two former directors who were seconded to VBS Mutual Bank but failed to report any suspicious transactions, acting chief executive officer Matshepa More said on Thursday.

More told Parliament's watchdog the Standing Committee on Public Accounts (Scopa) that Paul Magula was fired after a disciplinary process and Ernest Nesane quit before internal action could be taken against him.

"The board has asked that we institute criminal charges," she added.

More said Magula, the former executive director of risk at the PIC, and Nesane, the former executive head for legal and compliance, had failed to inform the PIC of fictitious transactions at VBS.

Asked by members of Parliament (MPs) what they reported, she replied: "They told us nothing, on appearance they told us business was good, we were growing the advancement of a black bank."

More said the PIC became suspicious that all was not well when it noticed that "the numbers were not tallying up" as millions were literally disappearing from the bank's balance sheet overnight.

A forensic report released by the SA Reserve Bank revealed that R1.9 billion was looted from the failed bank by directors and politically connected individuals.

African News Agency/ANA