'What has been happening at VBS is fraud'
South African Reserve Bank Governor Lesetja Kganyago has described the events that unfolded at VBS Mutual Bank as fraud.
Kganyago addressed a packed media room in Pretoria, providing an update on VBS.
"Let's be clear, what has been happening at VBS is fraud. The regulator is not there to be detecting whether or not the institution is being defrauded. The board and the management of an institution is supposed to have proper systems of controls and governance to make sure that fraud is prevented and if it is detected it is dealt with. Fraud is a crime," explains Kganyago.
VBS was placed under curatorship after it experienced liquidity problems when it could not meet its commitments to the national payments system.
The SARB subsequently announced that all retail depositors - with an amount of R50 000 per depositor - would be guaranteed by government.
VBS Bank retail depositors can breathe another sigh of relief as they will receive deposits of up to R100 000.
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The announcement comes amid frustration by depositors in Limpopo, who queued day and night outside VBS, in hopes of salvaging some of the monies deposited to the bank.
Reserve Bank Governor Kganyago says depositors can access their monies from Friday.
"Following discussions with National Treasury, the government has provided a guarantee to the SARB to facilitate the repayment of all retail deposits of up to R100 000 per retail depositor, starting from 13 July 2018," says Kganyago.
Retailers will also be able to access their money through Nedbank.
"Retail depositors or account holders who have more than R100 000 deposited in VBS will only be able to access their deposits up to R100 000 through their new Nedbank accounts," adds Kganyago.