VBS: Limpopo ANC says will pay victims back with no cost to taxpayer

The Limpopo ANC wants to resuscitate the Venda Building Society (VBS) Mutual Bank – and vows all the victims who lost money when the bank collapsed due to dodgy deals, will get their money back.

But, the party swears, it will not use any taxpayer money to achieve these goals.

“We have not planned to use any money from somewhere to settle the victim, nor are we planning to use the taxpayers’ money,” said provincial secretary Reuben Madadzhe.

ANC says victims will get money back

Some prominent ANC figures in province were allegedly involved in funnelling municipal funds from towns into VBS, despite Treasury prohibiting the investment of public funds into mutual banks.

There have also been allegations of breaches of the Public Finance Management Act in the placing of the investments.

“We will use the interest on the money the curator is getting from all those who took loans from the bank before it collapsed,” Madadzhe said.

“Remember, when the bank collapsed, there were people who took loans from it. These people are up to today settling their accounts with the curator.”

Madadzhe said the ANC’s plan is to ask the curator to pay all the profits of the loans to victims.

“It is the same money that the government will use to pay back the victims. Those include investors from the stokvels, businesses and groups or individuals,” he said.

“We are waiting for the premier of the province, who is currently on an official government assignment overseas, to return. Once she is back, we will join the VBS Shareholders Forum to chart the way forward.”

Addressing VBS victims during the 70th birthday of ANC veteran Tshenuwani Farisani at the weekend, Madadzhe assured them the party’s plan to return their monies was ready.

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VBS victims say they have nothing left

Aubrey Mulaudzi of Thohoyandou, who lost R2.5 million in the VBS collapse, said he was now as poor as a church mouse.

“I am a businessman owning a motor mechanic workshop. I had employed 17 people… these were the have-nots, the breadwinners and the orphaned from far-flung rural villages.

“I had to retrench people. All the suppliers pulled back and then I had to close doors,” he said.

“My family had to go days without food, my children lived from hand to mouth and I couldn’t pay my bills,” Mulaudzi said.

“I cried to the police, to the government and everyone who seemed to care, but it all came to naught.

“When Madadzhe told us the government’s plan, we all hoped for the better. We believed in him because knows the colour of poverty and the pains that we felt all these years,” said Mulaudzi.

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‘I will never invest in a bank again’

Another investor, Cate Mushiana of Vuwani village outside Thohoyandou, who lost R450 000, said VBS has taught her a lesson.

“I will never invest in a bank again. If I do, I will do a background check first,” she said.

Mushiana is a mother of four and two orphaned children.

“All of them depended on the sales I made from my vegetable garden and my mini butchery. I sold mogodu (tripe), chicken feet, boiled eggs, boerewors, tomatoes, spinach and cabbage.

“When I learnt the bank was closed, I cried for weeks because I did not know where my next meal would come from,” Mushiana said.

“My advice to other women, especially small business owners, is that you need to have a financial expert to guide you before you invest money. If not, they will rip you off and leave you even poorer,” she said.

ALSO READ: VBS looting: 33 arrested, 43 under investigation

Justice minister also linked to VBS

Justice Minister Thembi Simelane is now under a cloud because of links to VBS for a “commercial loan” of R575 600 from Gundo Wealth Solutions, owned by Ralliom Razwinane.

The firm allegedly brokered unlawful investments of R349 million into the bank by the Polokwane municipality.

Simelane was mayor of the municipality at the time of the transaction in 2016 and allegedly used the “loan” to purchase a coffee shop in Sandton.

Razwinane is currently on trial for fraud, corruption and money laundering.