VBS depositors: 3 months left to redeem savings
Qualifying VBS Mutual Bank (VBS) retail depositors who had up to R100 000 in their VBS accounts, can redeem their funds at any Nedbank Limited (Nedbank) branch until 8 July 2021.
This was announced by VBS liquidator, Anoosh Rooplal in a joint communication from the South African Reserve Bank, the liquidator of VBS and Nedbank Limited last Thursday.
“This is the date when the agreement between the liquidator, the Prudential Authority (PA) and Nedbank is due to end.
“In terms of this agreement which was concluded in 2018, depositors were guaranteed up to R100 000 per depositor and had three years to collect their money,” Rooplal explained and added that the intention for this initiative was always for the vulnerable depositors to not suffer financial loss as a result of the fraud that was perpetrated at VBS, and hence the decision by National Treasury to guarantee these funds.
According to Rooplal, the transfer to Nedbank of individual depositors with balances of up to R100 000 has been a very successful exercise and the depositors were able to access their funds fairly quickly.
“Without the intervention of the South African Reserve Bank (SARB), these depositors would still be out of pocket for their funds. Of the original 18 300 deposit accounts, 17 750 have been transferred to Nedbank at a value of R260 million and 98% of the R260 million has been activated and collected by depositors in terms of value,” Rooplal added.
A decision was made by the PA and Nedbank to close some 3 773 accounts with balances of R100 or less.
These accounts amounted to approximately R105 000 and were closed from a cost and administrative perspective. These depositors still reserve the right to claim their funds from Nedbank up until 8 July 2021, according to Rooplal.
The final tranche of qualifying accounts was recently transferred to Nedbank and constituted some 370 accounts amounting to approximately R3,7 million in value.
In order to redeem their money, South African citizens must provide their South African identity documents, while stokvels, clubs and burial societies should provide their pro-forma founding statement for burial society; or resolution document or founding document or certified copy thereof or another document relating to the founding of legal form or a declaration of other legal entities form.
Rooplal also explained that claims were received from VBS retail and institutional creditors who are owed more than R100 000, during the first and second round of meetings held with creditors.
“The process to determine the validity of creditors’ claims has been largely completed by the liquidator. Communication has been sent to the Master of the High Court as well as to those affected creditors regarding their reduced or expunged claims as per the Insolvency Act 32 of 1916,” Rooplal concluded.
Further information is available on the VBS website or from Louise Brugman on behalf of the liquidator of VBS, at 083 504 1196.
