Zuma’s VBS Bank could be the victim of R900 million fraud

Zuma’s VBS Bank could be the victim of R900 million fraud

- VBS Mutual bank can’t account for roughly R900 million out of a total deposit book value of R2.9 billion

- Curators fear there might have been massive fraud at the bank

- VBS shot to fame when it provided Jacob Zuma with a R7.8 million loan to repay the Nkandla money

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VBS Mutual Bank which shot to fame after it provided former president Jacob Zuma with a R7.8 million loan to repay the state for upgrades to his Nkandla homestead.

The bank went into curatorship in March when it could not meet its commitments. The curator has revealed that roughly R900 million out of a total of R2.9 billion deposits cannot be located.

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SizweNtsalubaGobodo director Anoosh Rooplal was appointed to take over its running. Rooplal has found significant problems with VBS’s books.

Briefly.co.za gathered that Rooplal fears the bank may have been subject to massive fraudulent transaction.

When the bank was placed under curatorship it had R24 million in liquid funds, this despite its supposed R2.9 billion in deposits. This difference immediately raised eyebrows and now a clearer picture is emerging of what might have transpired at the bank.

"There may have been fraudulent reporting and fraudulent transactions conducted in order to extract money from the bank in order to further the personal interests of certain key individuals and companies related to the bank," Rooplal said.

The possibility of such insider looting comes as a shock to a sector which is famed for being tightly regulated.

Momentum Securities banking analyst Brian Mugabe says despite this the VBS scandal was unlikely to make any impact on the banking sector as a whole.

"The size of VBS relative to the sector, this is not going to have flow-through risks to other banks," says Mugabe.

READ ALSO: Moping Mugabes refuse to vacate official presidential residence

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Source: Briefly.co.za

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