We the Minority Shareholders of VBS note and welcome the resolution by ANC to reinstate Two PEC Leaders who have been suspended for the past two years.As Minority Shareholders we hope this will go a long way towards the de-politicisation of the VBS matter for narrow Factional Battles within the ANC.Equally, we are not interested in participating in any ANC internal consultation processes because when VBS Bank was abruptly and illegaly closed by an Indian Deputy Governor of the Reserve Bank and an Indian Liquidator inspite of our plea( for intervention) this fell on deaf ears.Even today we are completely sidelined from the liquidation process by the same Indian Liquidator.
Government and the ANC did not care to consult us,so today we are surprised by this sudden change of heart and the need for consultation.We have said before to the ANC and Government that let's arrest criminals(Bank Executives) but still save VBS Bank.And if there is any Municipal Official who committed fraud let they too be arrested.
Equally we have asked Government to focus on the oversight failure Treasury and Auditor General.This is because VBS has been taking Municipal Deposits since 2012 and neither Treasury nor the Auditor General raised concerns nor made adverse Audit findings in relation to those Municipal Deposits in VBS.It is only five years later in 2017 that National Treasury issued a directive stopping from Municipalities investing in VBS.
Even the former Minister of Finance,Mr Nhlanhla Nene when asked in Parliament on this oversight failure he said he never knew that Municipalities weren't allowed to invest in VBS Bank.This is because the MFMA is only prescriptive on the Primary Accounts(Operation al)of Municipalities in that they should be opened with Commercial Bank.
But in terms of investments the MFMA only directs Municipalities to invest with a Financial Institution and in terms of the Financial Services Board(FSB)Act a Mutual Bank is also defined as a Financial Institution on the same terms as a commercial bank,insurance company, asset management company etc. hence to date some Municipalities invest their surplus funds with the above institutions in line with the FSB Act and there is no concern of illegality raised.
Our earlier plea with Government and the ANC to save VBS Bank wasn't illogical but premised on similar circumstances that befell the African Bank.If Government could rescue the African Bank, why not VBS?And again the answer lie in the politisation of the VBS Matter for Factional Battles within the ANC.
We are once again disappointed that the ANC still want to drag us into their Factional Battles through this so called consultation on the NEC Resolution to reinstate its Leaders after two years of unjust suspension without any hearing.
Our primary interests as Shareholders is that the VBS Banking License should be returned to the People of Vhembe.This Banking License is the Collective Heritage of the Vha-Vhenda People bestowed on us by our visionary grand fathers,who under difficult Apartheid conditions spearheaded the call for meaningful black economic empowerment and active participation in the Banking Sector.
To this day we remain shocked on how the ANC Democratic Government could allow this bank to be liquidated,moreso when we have presented concrete proposals with sound financial models to the Reserve Bank and Treasury.This was out rightly rejected because a pre- conceived decision had ( already) been taken to close the Bank at all costs so as to deprive the Vha-Vhenda People of their Proud Heritage and deepen Factional Battles within the ANC, particularly in Limpopo.
As we have stated in our statement two weeks ago,we welcome the arrest of Bank Executives who were ( allegerdly) directly involved in defrauding VBS Bank and we must now allow justice to take its course.
In conclusion we hope the Government and ANC will return the VBS Banking License to the Vha-Vhenda People.
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