Motau said in the report that the investigation “has revealed a wide range of criminality in the conduct of the affairs of VBS” and also at Vele Investments, the bank’s major shareholder.
“Indeed, it emerges very clearly that VBS and Vele have been operated as a single criminal enterprise, with Matodzi firmly at the helm,” Motau found.
“It is imperative that those who have been identified as participating and benefitting from this criminal enterprise be charged and prosecuted.”
Motau’s recommendations include that:
• The Prudential Authority takes immediate steps to pursue criminal charges against those that have been identified as being responsible for the cover-up constituted by the publication of the fraudulent audited financial statements for the year ended 31 March 2017
• Steps be taken to lay criminal complaints against “those identified as being the perpetrators of the scheme of theft of funds from VBS; those who benefitted from the receipt of funds through theft or fraud; and those who have committed crimes involving corruption, whether as the maker of bribes or as the recipient of bribes”;
• That his report be made available to law enforcement authorities to “further investigate the crimes reported on and to seek the prosecution of the perpetrators”;
• That the SA Revenue Services be informed of the “multitude of offences” to enable it “to pursue both criminal charges and tax recovery against the offenders”;
• Those who benefited from the theft or fraud be sued and or sequestrated;
• The Asset Forfeiture Unit be brought in “to preserve and confiscate the proceeds of the crimes that have been committed”; and
• An “auditor’s liability claim be instituted by the Prudential Authority, the curator and National Treasury against KPMG for recovery of their respective damages”.
“I also recommend that urgent steps be taken to wind-up VBS. It seems clear to me that there is no prospect of saving VBS. It is corrupt and rotten to the core. Indeed, there is hardly a person in its employ in any position of authority who is not, in some way or other, complicit,” Motau found.
“Finally, as has been noted repeatedly in this report, many of those implicated in the looting of VBS are chartered accountants and some attorneys. They are not fit and proper persons to fill those offices which require utmost honesty and integrity.
“I recommend that the Prudential Authority refers complaints about these persons to the relevant professional bodies having jurisdiction so that steps can be taken to strip them of their status.”
Would be interesting to know what the standing is of Zuma's personal loan that VBS supposedly granted him to pay for Nkandla?
This is just clearly wholesale theft of the banks deposits. It is beyond comprehension. No wonder Malema wants to nationalise the banks. They'll just dole out billions to themselves and that will be the end of it (and the economy).
But included in the 146-page document is testimony from VBS CEO Andile Ramavhunga‚ who was asked whether a commission of R1.5m had been paid to a group of South African Transport and Allied Workers Union (Satawu) officials to solicit a R1bn deposit from Prasa.
Ramavhunga replies: “It could have been… I know for a fact that we were asked to put money into the Dudu Myeni Foundation.” He further stated that the request for the donation surfaced at the same time they were soliciting the deposit from Prasa.
The investigators concluded Ramavhunga meant to refer to the Jacob G Zuma Foundation‚ of which Myeni is the chair.
On 30 May, the committee discussed VBS bank. As mentioned above, Momoniat wrote the Municipal Finance Management Act which allows municipalities to bank with commercial banks. According to Momoniat, VBS actively flouted the law. Shivambu said any wrongdoers must be prosecuted, but jumped to the rescue of VBS, accusing treasury of being partisan to Capitec (also the subject of a Viceroy “investigation”) and accuses Treasury of negligence.
Momoniat’s response is recorded in the minutes as: “…There was no doubt that VBS at some point acted like it was politically untouchable and enjoyed protection. When VBS people once interacted with treasury, their arrogance was unbelievable. He indicated that even some members within the committee were lobbying to stop the curatorship.”25
Sources in the know have alluded to Shivambu’s undue influence and involvement in the VBS matter – an allegation that may soon find its way into a formal investigation.
The data shows that Momoniat briefed parliament on matters relating to his portfolio. Shivambu knows that. So why the attack?
Matodzi instructed Truter and Mukhodobwane to facilitate the acquisition of Insure Group Managers for R250m with fictitious money. The imbalance in VBS’s balance sheet would then be fixed by having Insure deposit its real money back into VBS. The deal was done and the fake R250m ended up in an Insure account at VBS. From there it was paid out to other related parties, becoming real money. Vele, in effect, 'paid nothing for the investment' in Insure, claims Rooplal. Other Vele subsidiaries were bought in the same way.”
The Insure purchase immediately drew my attention.
Insure is said to control 75percent of the gross short-term premium collections in South Africa. These premiums are collected from various short-term insurance brokers and are then paid over to the Insurance companies. The size of the industry is estimated to be in excess of R120billion annually.
Handling amounts of this magnitude can only be done with robust systems, the highest level of integrity, efficiency, reliability, honesty and a host of similar best practices.
I asked the chief executive of Insure, Charl Cilliers, a number of questions relating to the transaction. Insure said the firm needed the VBS Curator to give them the go ahead to release answers. After delays of several days no answers were received.