Accounting body strips former VBS board chair of membership

VBS Mutual Bank
VBS Mutual Bank

The South African Institute of Chartered Accountants has announced that its disciplinary committee has ordered that former chairperson of the VBS board, Tshifhiwa Matodzi, be stripped of his registration.

The decision means that Matodzi won't be recognised as a chartered accounted. 

Saica said in a statement on Wednesday afternoon that the decision to cancel Matodzi's membership was taken at a meeting on February 19.

"The Disciplinary Committee has ordered the cancellation of Mr Matodzi's membership from SAICA", the institute said.

Matodzi's name was prominently mentioned in a damning report, commissioned by the SA Reserve Bank, into what transpired at the mutual bank. 

The 'Great Bank Heist' report, released last year, detailed how executives at the bank misappropriated funds, contributing to its downfall. Almost R2bn was looted from the bank, according to the report, with officials using the money of depositors to splurge on personal luxuries.

A number of municipalities made large deposits into the bank, which was contrary to regulations prohibiting the investment of public funds in mutual banks.

Saica said the sequestration hearing of the bank's former CEO, Andile Ramavhunga, will resume in April. VBS was placed under curatorship by the Reserve Bank in March.

Several officials, including President Cyril Ramaphosa, have said that the monies stolen from the bank's depositors, mainly pensioners, must be recovered.

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