SARB’s Kuben Naidoo- Situation at VBS Bank much worse than we thought

JOHANNESBURG- Kuben Naidoo, Reserve Bank deputy governor, told a media briefing on Tuesday the financial situation of VBS was “much worst than we thought”.

Nadioo said after the release of the annual report by Bank Supervision Department where they had put tough measure to protect depositors interest, he said, “We have applied a forensic investigation to asses whether there are cases of fraud in the the bank. That investigation is still underway.”

He added that the investigation will likely take two to three months to complete, “It is our intention to continue with the curatorship.”

There is a probability that the bank can be saved but Nadioo said,  “We are working towards trying to save the bank, whether we are able to save the bank will depend on whether we are able to recover sufficient funds to pay back depositors, and where the bank is a viable business model, with systems in place to sustain the bank.”

“[For] now we are trying to investigate whether there was fraud in the bank, whether there were factitious deposits and loans to related parties that were not disclosed to the regulator,” Naidoo added.

Photo Credit- BusinessTech

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