- The Vhembe District Municipality in Limpopo are one of 13 municipalities that invested in the now-defunct VBS Mutual Bank
- They have received R22 million from the bank's liquidators as they work to repay all parties who invested
- Companies and municipalities who invested in VBS will each receive seven cents for every Rand they invested
PAY ATTENTION: Follow Briefly News on Twitter and never miss the hottest topics! Find us at @brieflyza!
POLOKWANE - Limpopo's Vhembe District Municipality are amongst the VBS Mutual Bank investors who have started to receive payouts in the form of dividends following the financial institution becoming defunct and liquidated.
Matodzi Ralushai, a spokesperson for the municipality, said that the payouts would be kept aside to fund service delivery in the district. So far, Vhembe has received R22 million from VBS's liquidators.
"We have confidence that in the end all those agreements will be done and the money will be able to come back to the municipality for us to continue with a normal service delivery using that money that was invested," Ralushai said.
VBS Mutual Bank's investors and how much they will receive
There are 12 other municipalities, several companies, and a number of individuals who invested in VBS will soon be receiving dividends, SABC News reports. The municipalities and companies will receive seven cents for each rand they invested.
Enjoy reading our stories? Download the BRIEFLY NEWS app on Google Play now and stay up-to-date with major South African news!
Individuals who invested more than R100 000 will also receive dividends. In addition, some companies already received dividends in 2021 from Nedbank. VBS's former employees who invested have received a payout of R28 000 each.
According to News24, Anoosh Rooplal, one of the bank's liquidators, believes that they have made a good start in returning a portion of funds to those who invested. The dividends primarily come from loan repayments owed to VBS.
South Africans react to VBS liquidation dividends
"When will the pensioners be paid back?"
"Politicians who said they'll protect them are not there with them."
"Arrests with no prosecutions."
"Why hasn't the #RabbleRouser and his mates been charged with the R16m robbed from VBS Mutual Bank? They think they are invincible."
3 more arrested in VBS Bank scandal, 14 suspects in total
In earlier news about this case, Briefly News reported that police have confirmed three additional suspects have been arrested in connection with the VBS Bank scandal, which brings the total number of arrests to 14.
The three suspects are a 57-year-old, a 41-year-old, and a 39-year-old. The latter two were business owners, while the municipality formerly employed the 57-year-old as a manager.
The three suspects appeared in Pretoria's Specialised Commercial Crimes Court on 17 November on charges of money laundering, corruption, and disobeying Section 173 of the Municipal Finance Management Act.
Source: Briefly News