- President Cyril Ramaphosa said he feels personally ashamed by the VBS scandal
- The VBS Mutual Bank was placed under curatorship in March after which executives are alleged to have further misappropriated and or stolen R1.5 billion
- Ramaphosa said the culprits behind the scandal would be dealt with in terms of the law and would be held accountable
On Monday, President Cyril Ramaphosa said he felt ashamed by the VBS scandal and he warned those responsible for the scandal that they would be held accountable and would face the full might of the law.
Ramaphosa said it was shameful that people with bad intentions had managed to take advantage of poor, vulnerable and ordinary people who had saved money in the VBS Mutual Bank in the form of pensions and burial societies.
VBS Mutual Bank was placed under the administration of the South African Reserve Bank in March when it faced a liquidity crisis after various municipalities made a run on the bank and withdrew their deposits.
Since being placed under administration the bank has been rocked by a massive fraud scandal in which it is alleged that executives misappropriated and or stole around R1.5 billion.
Briefly.co.za gathered that VBS Mutual Bank first rose to prominence in the wider South African consciousness after it approved a R7.8 million loan to former president Jacob Zuma so he could pay back a portion of the non-security upgrades at his Nkandla home.
Fin24.com reported that Ramaphosa did not mince his words when it came to what he thought about the actions of those involved.
The president said during an interview on eNCA that the time had come to call a spade a spade and as such the time had come to call those who had stolen from the bank what they are – thieves.
Ramaphosa said he had hope that the stolen money would be recovered and that the VBS brand could be saved. He said the VBS brand had a long and successful history of serving the people of Limpopo.
Ramaphosa admitted that the current regulations governing the operations at mutual banks were far less strict than those governing commercial banks. He said certain groups had suggested that the regulations were partly to blame for the scandal.
The president said the regulations would be reviewed and if necessary changes would be made to ensure nothing like the VBS scandal can ever happen again.
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