Prudential Authority seeks to appeal ruling setting aside parts of VBS report

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The Prudential Authority of the Reserve Bank has filed a notice to appeal a High Court decision which set aside findings made by Advocate Terry Motau against ANC Limpopo treasurer Daniel Msiza in the VBS report.

The body wants the Supreme Court of Appeal or a full bench of the High Court to hear the matter. It believes that the judge in a ruling handed down on 11 August erred in setting aside parts of the report implicating Msiza.

Judge Vivian Tlhapi expunged five paragraphs implicating Msiza in Motau's Great Bank Heist report of September 2018, stating that he was not afforded a right to procedural fairness before the release of the report, and that failure to afford him a right to be heard was unconstitutional.

In the report, Msiza was alleged to have used his political influence to convince mayors and municipal officials from at least 10 municipalities in Limpopo to invest hundreds of millions of rand in the now-collapsed bank. The Prudential Authority, on the other hand, argues in its papers that Msiza was not entitled to be heard during the investigation, which was conducted under the FSR Act.

"The facts of the matter did not warrant that the applicant should be granted the right to be heard."

It goes on to say that the impugned paragraphs of the report contain testimonies of witnesses, summarised WhatsApp messages and examined documentary evidence, adding that it not would not be appropriate to review and set aside these paragraphs and the appeal has a reasonable prospect of success.

"This matter raises issues of public importance. It concerns an investigation into misconduct in the affairs of VBS Bank, which affects indigent and vulnerable members of society whose hard-earned funds were syphoned through unlawful and egregious means."

About R2 billion of depositors' money was looted, in a scandal that involved top executives and other beneficiaries.

Mzisa had told News24 after the initial High Court ruling that he was humbled by the decision, which vindicated him and the supremacy of the country's laws. 

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