• You are not registered on MyBroadband, which means you miss out on great benefits. To join our community is very easy, and completely free. Register now.
  • New Two-Day Giveaway - Enter Here

VBS Mutual Bank being victimised - EFF

schumi

Honorary Master
Joined
Mar 26, 2010
Messages
19,125
#41
KPMG warns more staff may be involved in VBS investigation

KPMG expects the results of an "independent investigation" into its auditing work for VBS Mutual Bank "imminently", it has told staff.
The investigation is being conducted by law firm Bowmans.

And the investigation may claim more heads, staff were warned.

"We anticipate further disciplinary action may be taken which may involve others," the audit firm said in an internal communication.

"We cannot tolerate any behaviour which places our people, our clients or the public at large, at risk."
More at: https://www.businessinsider.co.za/kpmg-warns-more-staff-may-be-involved-in-vbs-investigation-2018-4
 
Joined
Feb 22, 2005
Messages
14,464
#42
Love to hear the EFF's updated view on this.

“Opting for curatorship as the first measure undermines the bank and undermines black people’s participation in the ownership and control of financial services institutions,” the party’s spokesperson Mbuyiseni Ndlozi said.
Pretty sure the black people undermined themselves.
 

j4ck455

Expert Member
Joined
Jan 2, 2006
Messages
4,889
#44
When KPMG's SA branch produces an audit report, is there anyone left that will blindly believe that the audit was not compromised?

Likewise, how is it that KPMG's SA branch still has any customers, or are existing customers just waiting for their KPMG contract to expire before migrating to an auditor that still has a reputation?
 

infscrtyrisk

Expert Member
Joined
Nov 22, 2014
Messages
1,298
#48
I'm surprised that no-one picked up on the Nkonki scandal yet:

The Nkonki Pact Part 1: How the Guptas bought themselves an auditor
http://amabhungane.co.za/article/20...1-how-the-guptas-bought-themselves-an-auditor

The Nkonki Pact Part 2: Eskom’s new billion-rand consulting deal for Essa & Co
http://amabhungane.co.za/article/20...-new-billion-rand-consulting-deal-for-essa-co

Nkonki CEO Mitesh Patel resigns after amaBhungane exposes Gupta fronting deal
https://www.fin24.com/Economy/nkonk...bhungane-exposes-gupta-fronting-deal-20180413

Who's next? SizweNtsalubaGobodo? Oops, forgot about this: https://www.enca.com/south-africa/a...or-irregular-expenditure-in-denels-financials
 

access

Executive Member
Joined
Mar 17, 2009
Messages
6,750
#54
malema makes noise about all other banks, this one he sticks up for.

i wonder how much interest he has in it
 

TysonRoux

Expert Member
Joined
Aug 7, 2012
Messages
2,684
#55
Curator withdraws VBS's 2017 financial statements

Curator withdraws VBS's 2017 financial statements

The turmoil at VBS Mutual Bank deepened on Monday, when the bank’s curator announced he was withdrawing its most recent financial statements.

In a media release, curator Anoosh Rooplal said VBS’s audited financial statements for the year ended March 31 2017 have been withdrawn “as they contain material misstatements and are no longer considered to be reliable”.

“Users of these financial statements are requested not to place reliance on these financial statements,” he said. The documents have been removed from the bank’s website.

Rooplal’s decision comes a day after VBS’s external auditor KPMG revealed that two of its partners involved in auditing the bank, had not fully disclosed their financial interests held with VBS.

The two partners, Sipho Malaba and Dumi Tshuma, had both resigned on Friday, ahead of disciplinary charges being laid against them.

Rooplal said that KPMG had been informed of the withdrawal, and that amended results would be reissued in due course.

The decision would not change the focus of the curatorship, he said.

“We are still of the view that the curatorship role provides the best mechanism to rehabilitate the bank if possible and my primary role of stabilising the bank and protecting the interests of depositors remains firm”.

VBS was placed into curatorship on March 11 after it experienced a severe liquidity crisis. Since Rooplal took over however further details have emerged pointing to far greater problems at the bank - including R900-million which cannot properly be accounted for.

In light of the discoveries the Reserve Bank announced last week that it was launching a separate forensic investigation into the affairs of the bank.
Maybe we'll get to see how Zupta's "loan" was processed.
 

Solarion

Honorary Master
Joined
Nov 14, 2012
Messages
16,818
#56
Mutual Banks have historically been characteristically conservative in their approach. This conservatism is what allowed Mutual Savings Banks to remain stable throughout the turbulent period of the Great Depression, despite the failing of some commercial banks. Because Mutual Savings Banks are run very conservatively, they tend to be insulated from some of the volatility of the market. Unlike other banks, they weather financial crises much better, and may continue to return a profit when other institutions are failing.
http://www.finbondmutualbank.co.za/page3.html

That is until the ANC get involved and the EFF come along and further exacerbate the situation.

One might be forgiven for thinking that the EFF actually want to bring VBS to it's knees.
 

schumi

Honorary Master
Joined
Mar 26, 2010
Messages
19,125
#57
VBS Bank 'related-party' loans bonanza

The crisis-ridden VBS Mutual Bank lent out large sums of money to its own directors, municipal officials and the SA Municipal Workers' Union (Samwu) to finance a building the union already owned.

At least five of VBS’s senior executives received mortgage loans running into millions of rands between 2015 and last year.

The October 2017 mortgage deal worth R11.8m, which VBS signed for the Samwu headquarters in Johannesburg, is now shrouded in mystery.

This week, Samwu denied that it ever mortgaged its headquarters, Samwu House in Marshalltown, downtown Johannesburg, with VBS last year. It instead claimed that it owned the building outright and had done so since 2007.

However, a copy of the mortgage deal filed at the Johannesburg deeds office is dated October 4 2007 and signed by Samwu’s president Pule Molalenyane.

The union’s general secretary Simon Mathe, however, insists that the mortgage bond held at the deeds office is a fake.

“We own the building. We bought it nine years ago for R6m. We are not paying anything on it. That information is false,” he told City Press by phone from Cuba this week.

Mathe claimed Samwu is the victim of a disinformation campaign by people who have “intercepted our documents on our IT system” – insinuating that the bond held at the Johannesburg deeds office may be a forgery.

The union partnered with VBS last year to launch a series of low-cost financial products targeting Samwu members, which is not unusual for unions which often team up with insurers and medical schemes.

Mathe, however, says rumours about Samwu’s further support for VBS are lies.

The SA Reserve Bank (Sarb) placed VBS under curatorship last month when it ran out of cash after relying on large, illegal, and short-term municipal deposits to fund long-term loans.

The cash crunch at the bank has left a number of municipalities in the lurch as hundreds of millions of rands remain stuck at VBS.

The bank has R1.5bn in municipal deposits, of which R1.1bn is from eight Limpopo municipalities.
More at: https://www.fin24.com/Companies/Financial-Services/vbs-loans-bonanza-20180428
 

konfab

Honorary Master
Joined
Jun 23, 2008
Messages
16,555
#60
Unions being a pack of illiterate corrupt liars? Tell me something I don't know...

The crisis-ridden VBS Mutual Bank lent out large sums of money to its own directors, municipal officials and the SA Municipal Workers' Union (Samwu) to finance a building the union already owned.

At least five of VBS’s senior executives received mortgage loans running into millions of rands between 2015 and last year.

The October 2017 mortgage deal worth R11.8m, which VBS signed for the Samwu headquarters in Johannesburg, is now shrouded in mystery.
Their official statement.

The paper further alleges that “a copy of the mortgage deal filed at the Johannesburg deeds office is dated October 4 2007 and signed by Samwu’s president Pule Molalenyane” this is far from truth as Molalenyane could have not entered into any agreement on behalf of the union in 2007 as he only became President in August 2015.
http://www.samwu.org.za/press-statements/item/1539-samwu-does-not-have-a-mortgage-loan-with-vbs.html

They are a pack of liars, though that won't stop the loyal membas from paying their dues.

:crylaugh:
 
Top