South Africa 3.8.2018 07:12 pm

VBS Bank’s former CEO, COO provisionally sequestrated

The North Gauteng High Court in Johannesburg. Archive photo: Ashraf Hendricks

The North Gauteng High Court in Johannesburg. Archive photo: Ashraf Hendricks

Former COO Robert Madzonga is the group CEO of VBS Bank’s main shareholder, Vele Investments, which was also liquidated.

The South Gauteng High Court in Johannesburg today granted provisional sequestration orders against VBS Mutual Bank’s former chief executive, Andile Ramavhunga, and the previous chief operations officer of the embattled bank, Robert Madzonga.

This follows Tuesday’s ruling in which acting deputy judge-president Moroa Tsoka granted provisional sequestration orders on VBS executives including former chairperson Tshifhiwa Matodzi, Phillipus Truter and Phopi Mukhodobwane over the disappearance of monies amounting to at least R1.5 billion from the bank’s coffers.

Madzonga is the group chief executive officer of VBS Bank’s main shareholder, Vele Investments, which according to the bank’s curator’s founding affidavit benefited about R745 million from alleged fraud carried out by bank executives. Vele Investments was also liquidated.

Last month, the curator of VBS, Sizwe Ntsaluba Gobodo, instituted an urgent application in the high court against Vele Investments for its liquidation and the sequestration of the estates of executives.

In March, the South African Reserve Bank (Sarb) placed VBS under curatorship with immediate effect after  the bank experienced increasing liquidity challenges over the previous 18 months.

African News Agency (ANA)

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