UPDATE: Court orders VBS Bank to be liquidated

The North Gauteng High Court has issued a final order to liquidate VBS Mutual Bank.

This after the South African Reserve Bank's Prudential Authority applied for the final liquidation of the mutual bank. In its affidavit, which went unopposed, the Authority submitted that the order to liquidate the bank was necessary, would be beneficial to the creditors of the bank, and that it was in the interest of the public.

It further submitted that VBS was "hopelessly insolvent", both factually and commercially.

It is now expected that a liquidator should be appointed so that necessary civil and criminal proceedings can be pursued to hold those accountable for the looting of almost R2bn rand.

The SARB's Prudent Authority argued that there was no reasonable profitability, and that the continuation of the curatorship would not enable VBS to pay its debts or meet its financial obligations, let alone become a successful concern.

The judgment states that it is "not in the interests of the depositors and the public, where much debate presently rages about the fate of VBS, for the present status quo to remain".

The judgment comes despite calls by government, and some political parties, that the bank be saved.

"I grant the final liquidation of the bank on the basis of facts brought before me", said Judge Johan Louw.


It is unclear whether the model of the bank will be kept, as was eluded to by President Cyril Ramaphosa in a recent Q & A session in the national assembly.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
16.13
(-0.13)
ZAR/GBP
21.13
(-0.25)
ZAR/EUR
19.10
(+0.13)
ZAR/AUD
11.55
(-0.16)
ZAR/JPY
0.16
(-0.37)
Gold
1907.00
(+0.28)
Silver
24.37
(+0.43)
Platinum
880.00
(+1.15)
Brent Crude
40.81
(-3.00)
Palladium
2325.00
(-0.47)
All Share
54079.43
(-1.48)
Top 40
49560.81
(-1.44)
Financial 15
10503.32
(-1.33)
Industrial 25
74333.65
(-0.17)
Resource 10
50405.50
(-3.24)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
24% - 94 votes
No, I did not.
51% - 202 votes
My landlord refused
25% - 100 votes
Vote