VBS MUTUAL BANK MEMBERSHIP SUSPENDED

Publication Date: 07/11/2018

The Banking Association South Africa (BASA) has suspended the membership of VBS Mutual Bank, pending the outcome of the investigations and legal processes related to the conduct of the bank.

It is patently clear from the report by Advocate Terry Motau, titled the “Great Bank Heist”, that VBS Bank has violated the terms of their membership of BASA. The Banking Code of Practice in its preamble states: “We, the members of the Banking Association South Africa, undertake that we will act fairly and reasonably in a consistent and ethical manner.”

BASA is confident that the Prudential Authority in the South African Reserve Bank is managing the curatorship and application for the liquidation of VBS in terms of the applicable legislation and regulations, as well as in the best interests of its depositors and the stability of the financial system. We also support the efforts of the curator to resolve this matter in the best interests of all.

We call on the relevant authorities to act quickly to ensure that those who are guilty of the alleged fraud and corruption – which led to the collapse of VBS and the loss of money belonging to the taxpayers and the poor and vulnerable – are brought before a court and punished to the full extent of the law. The criminal activity that led to the collapse of VBS has set back inclusion and transformation in the financial services sector.

BASA and its members will continue to do all they can to help ensure that former VBS clients continue to have access to their savings and investments and banking services.