To sift fact from fiction, banking registrar Kuben Naidoo hired advocate Terry Motau to conduct an investigation, which is ongoing. His report, due within months, is likely to form the basis of any further action by government — including possible criminal charges.
This week, Naidoo told the FM that it has been confirmed that there indeed were “fictitious deposits” in VBS’s books. Rooplal concurs, saying that based on the preliminary results he’s seen, “it seems that [money was] moved out of the bank”. It’s an intriguing revelation, and the spotlight now turns to how, even if there were rogue executives, the bank was able to get away with it.
There seem to be two places to focus, seen intuitively: either auditors KPMG botched their job spectacularly, or they did indeed warn the Reserve Bank of what was happening, and the bank ignored the red flags.
Read the rest of Rob Rose, editor of the Financial Mail.