• You are losing out on amazing benefits because you are not a member. Join for free. Register now.
  • Big Two-Day Giveaway - Win an Amazon Kindle, a Mystery Gadget and Branded Gear. Enter Here.
  • Test your broadband speed and win prizes worth R5,000. Enter here.

VBS Mutual Bank being victimised - EFF

diesel

Expert Member
Joined
Mar 4, 2007
Messages
2,049
#22
I wish every EFF member would put their life savings into that bank, then force the reserve back to withdraw the curator ship so we can all watch the bank go down and everyone lose their life savings.
 

diesel

Expert Member
Joined
Mar 4, 2007
Messages
2,049
#23
He says it was highly risky for the bank to take sizable municipal deposits that were short-term and lend them out long term.
Eish this is what happens when the math pass rate is 30%.
 

ForceFate

Honorary Master
Joined
May 18, 2009
Messages
10,742
#24
I wish every EFF member would put their life savings into that bank, then force the reserve back to withdraw the curator ship so we can all watch the bank go down and everyone lose their life savings.
Isn't that borderline psychosis?
 

ponder

Honorary Master
Joined
Jan 22, 2005
Messages
70,901
#29
Managers of the bank are products of Bantu education
I'm pretty sure top managers & directors all hold degrees, I highly doubt blaming apartheid for their gross mismanaged is gonna fly. They did fine since 1982 only to fsckup now.

What's interesting is how municipalities started depositing with them 18 months ago (illegally), round about the same time they gave zumatello a 'loan' to pay back the money for nkandla. Coincidence maybe but I doubt it...

You also don't need a b.com to figure out that taking short term deposits and lending those out long term is going to end badly when a big depositor wants to withdraw and you can't meet your obligations (you're only a small bank, small client base & limited assets)... unless someone promised you behind closed doors that they will ensure depositors won't come knocking maybe?

C'mon look at this objectively and just forget about apartheid for a second, don't you see any other possible reasons for their failure?
 
Last edited:

Tikkop

Senior Member
Joined
Apr 12, 2016
Messages
880
#33
I'm pretty sure top managers & directors all hold degrees, I highly doubt blaming apartheid for their gross mismanaged is gonna fly. They did fine since 1982 only to fsckup now.

What's interesting is how municipalities started depositing with them 18 months ago (illegally), round about the same time they gave zumatello a 'loan' to pay back the money for nkandla. Coincidence maybe but I doubt it...

You also don't need a b.com to figure out that taking short term deposits and lending those out long term is going to end badly when a depositor wants to withdraw and you can't meet your obligations... unless someone promised you behind closed doors that they will ensure depositors won't come knocking maybe?
KPMG gave them a clean audit report for 2017 and gave the shareholders no indication of possible illegal deposit taking or that the going concern assumption might be at risk.

In fact their statement of financial position doesn't even differentiate between which assets and liabilities are current or non-current.

But ja, KPMG...
 
Last edited:

Gordon_R

Expert Member
Joined
Jul 5, 2009
Messages
3,887
#34
See, they're not shutting it down, just sorting out the liquidity mess: https://www.fin24.com/Companies/Fin...out-of-curatorship-stronger-treasury-20180312

Treasury confirmed in a statement issued late on Sunday that the minister of finance approved the recommendation by the Registrar of Banks to place VBS under curatorship.

“The aim of curatorship is ultimately to turn the mutual bank around. This is in contrast with liquidation, where the mutual bank is closed down,” said Treasury.

“The curator is given the legal means to create the necessary mechanisms to implement a resolution plan which will ensure the long-run sustainability of VBS.
 

ForceFate

Honorary Master
Joined
May 18, 2009
Messages
10,742
#37
The chairperson and ceo are chartered accountants.
I'm pretty sure top managers & directors all hold degrees, I highly doubt blaming apartheid for their gross mismanaged is gonna fly. They did fine since 1982 only to fsckup now.

What's interesting is how municipalities started depositing with them 18 months ago (illegally), round about the same time they gave zumatello a 'loan' to pay back the money for nkandla. Coincidence maybe but I doubt it...

You also don't need a b.com to figure out that taking short term deposits and lending those out long term is going to end badly when a big depositor wants to withdraw and you can't meet your obligations (you're only a small bank, small client base & limited assets)... unless someone promised you behind closed doors that they will ensure depositors won't come knocking maybe?

C'mon look at this objectively and just forget about apartheid for a second, don't you see any other possible reasons for their failure?
Looked at the post I was responding to?
 

schumi

Honorary Master
Joined
Mar 26, 2010
Messages
19,322
#39
KPMG suspends executive in charge of VBS bank audit

JOHANNESBURG - Embattled audit firm KPMG has suspended Sipho Malaba, the head of financial services auditing, which is one of their biggest units.

Malaba's appointment was announced in October last year, along with their new executive team.

KPMG has tried to restore public trust and rebuild is tarnished image after a number of scandals last year.

The company has gone to great lengths to distance itself after being so closely linked to the Gupta family and a number of businesses.

KPMG has also faced significant backlash over its so-called rogue unit report at the SA Revenue Service.

Malaba was tasked to lead the firm's strategic projects as the company and was moved into a new leadership position after the scandals of 2017.

Malaba was tasked with being the lead independent audit partner on VBS Mutual Bank, which has now been placed under curatorship.
More at: https://www.iol.co.za/business-repo...xecutive-in-charge-of-vbs-bank-audit-14393064
 

schumi

Honorary Master
Joined
Mar 26, 2010
Messages
19,322
#40

Reserve Bank announces forensic investigation into VBS Mutual Bank


A fuller investigation into VBS Mutual Bank has been commissioned by the South African Reserve Bank. This comes after a curator's report signalled possible fraudulent reporting and transactions to extract money from the bank in order to further the personal interests of certain individuals and companies.

The SARB said on Friday the Minister of Finance had appointed SizweNtsalubaGobodo Advisory Services‚ represented by Anoosh Rooplal‚ as the curator of VBS Mutual Bank (VBS)‚ on March 11.

"After a thorough assessment of VBS‚ Mr Rooplal recommended that an independent review of the business conduct of VBS be undertaken. Consequently‚ the Deputy Governor of the South African Reserve Bank and Chief Executive Officer (CEO) of the Prudential Authority‚ Mr Kuben Naidoo‚ has appointed Advocate T Motau SC as an investigator in terms of section 134 of the Financial Sector Regulation Act 9 of 2017 to conduct a forensic investigation into the affairs of VBS."
More at: https://www.timeslive.co.za/sunday-...s-forensic-investigation-into-vbs-mutual-bank
 
Top