Home Accounting and Auditing The great R2bn VBS bank heist gets bloodier and bloodier

The great R2bn VBS bank heist gets bloodier and bloodier

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Just when the ANC seemed to be washing the slime of Gupta corruption from its eyes, along comes The Great Bank Heist, a report by Advocate Terry Motau and Werksmans Attorneys. It names several ANC politicians and Brian Shivambu, brother of Economic Freedom Fighters deputy president, Floyd Shivambu, as beneficiaries of some of the roughly R2 billion reportedly looted from VBS Mutual Bank.

The ANC’s provincial deputy chairperson Florence Radzilani and treasurer Danny Msiza were also mentioned in the report. Brian Shivambu, who owns a company called Sgameka Projects, denies having received R16 million, as claimed in the forensic report. Shivambu told News24 that his company had provided professional consulting services for Vele Investments’ mining and insurance businesses. Though his name is mentioned in the report, he was never contacted by the VBS investigators. The Daily Maverick reported that some of the money found its way into the EFF’s and Shivambu’s coffers.

The biggest beneficiaries of the looted money were former executives of VBS and its main shareholder, Vele Investments. Former president Jacob Zuma and the Passenger Rail Agency of SA (Prasa) are also named in the report. The DA said it would lay charges against 50 people named in the report.

Former partner at KPMG, Sipho Malaba, who was fired from the audit firm in March this year after it was found he had taken undisclosed loans from VBS, is also mentioned in the report. He said he would approach the court to have the report set aside. The report says Malaba committed fraud in signing off on VBS’ financial statements and regulatory reports submitted to the Reserve Bank, “despite having knowledge that the financial statements misstated the bank’s position by nearly R700 million,” says News24.

“If Malaba and KPMG had blown the whistle, the looting could have been stopped much sooner, Motau found.”

Motau recommended that Malaba be criminally charged and revealed that VBS had given Malaba “soft” credit facilities totalling nearly R30 million, allegedly in exchange for his rubber stamping of the financial statements.

Daily Maverick reports that the EFF, in calling for Nhlanhla Nene’s head as finance minister because he was not forthcoming about several meetings with the Guptas, appears to have fallen into a trap it set for others. It now finds itself having to defend itself against the kind of abuse it famously hurls at the ruling party and others. If the EFF is found to have received VBS money, this is explosive.

Watch The Great Bank Heist in Numbers: