DA to lay fraud, racketeering and corruption charges against VBS executives

Issued by Kevin Mileham MP – DA Shadow Minister of Cooperative Governance and Traditional Affairs
09 Jul 2018 in News

The DA will lay fraud, racketeering and corruption charges against the executives of VBS Mutual Bank following allegations that the bank’s directors and Vele Investments, its shareholder, had defrauded the bank of more than R1.5 billion.

We had previously written to the Registrar of Banks, Mr Kuben Naidoo, asking that he urgently establish a Commission of Inquiry into VBS and municipalities that illegally deposited funds with the bank. We are pleased that the probe has been initiated.

We also called for an investigation by the South African Police Service into whether the bank’s directors paid millions of rands to Public Investment Corporation and Passenger Rail Agency of SA executives, and politicians, to facilitate deposits of public funds with the bank.

Residents of several municipalities now face the prospect of having no access to basic services as a result of this illegal depositing, mismanagement and plundering of public monies. It is therefore necessary that the affairs of the institution and the municipalities involved are probed in the interest of citizens and ensuring service delivery.

Despite the DA and National Treasury warning the municipalities against the illegality of depositing money with VBS, some municipalities proceeded to deposit money with the bank.

The DA have already laid fraud charges against the officials at all 15 affected municipalities in terms of Sections 7 (2) and 64 (3) of the Municipal Financial Management Act for allegedly making illegal deposits with VBS.

Individuals who are responsible for the potential loss of billions of rands in illegal deposits must be held accountable. Corruption has, for a long time, robbed South Africans of efficient service delivery and the VBS saga shows that this situation will not change under the ANC.

A DA-led national government will provide no room for corruption to flourish and will not allow public funds to be looted. By voting DA in 2019, citizens will ensure they have efficient service delivery and that their interests are prioritised.