DA lays fraud, corruption charges against VBS executives

DA shadow minister of cooperative governance and traditional affairs (Cogta) Kevin Mileham laid charges of fraud, racketeering and corruption against VBS Mutual Bank executives and its majority shareholder, Vele Investments, at Sandton Police Station in Johannesburg today.

In a statement, Mileham said he laid the charges follow the emergence on Sunday of allegations that the bank’s directors and Vele Investments had defrauded VBS of more than R1.5 billion.

“The DA is of the view that the implicated individuals breached Section 3 of the Prevention and Combating of Corrupt Activities Act as well as Section 2 of the Prevention of Organized Crime Act,” Mileham said.

He added reports suggested the ANC had accepted donations from the bank for a gala event from a questionable source.

“This essentially means that VBS has been used as a front for criminal activity in support of the uncaring ANC government.

“While the executives defrauded the bank and the ANC seems to have benefitted from this, ordinary citizens are now left to line up for days on end just to get their savings out,” Mileham said.

Retail depositors at the bank today had the chance to access their funds at Nedbank after the South African Reserve Bank (Sarb) announced on Monday that Nedbank would facilitate the repayments. Depositors will be repaid amounts of up to R100 000.

This follows a decision last week to secure guarantees from National Treasury of up to R100 000 per depositor for VBS Bank retailer depositors.

The guarantee does not cover municipal or corporate deposits.

“Earlier this year, it was revealed that 15 municipalities made deposits with VBS, despite an instruction by National Treasury against this practice. Some of the implicated municipalities are among the worst run and most financially unstable municipalities in the country.

“The South African Police Service now has a responsibility to thoroughly investigate these charges and ensure that these individuals are held accountable.

“The DA will not allow the ANC’s corruption to rob South Africans of efficient service delivery. We will ensure that the individuals who are responsible are held to account,” Mileham said.

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