The North Gauteng High Court has issued a final order to liquidate VBS Mutual Bank.
This after the South African Reserve Bank’s Prudential Authority applied for the final liquidation of the mutual bank. In its affidavit, which went unopposed, the Authority submitted that the order to liquidate the bank was necessary, would be beneficial to the creditors of the bank, and that it was in the interest of the public.
It further submitted that VBS was “hopelessly insolvent”, both factually and commercially.
It is now expected that a liquidator should be appointed so that necessary civil and criminal proceedings can be pursued to hold those accountable for the looting of almost R2bn rand.
The SARB’s Prudent Authority argued that there was no reasonable profitability, and that the continuation of the curatorship would not enable VBS to pay its debts or meet its financial obligations, let alone become a successful concern.