VBS Mutual Clients To Get Money From Nedbank
VBS Mutual Bank are famous for providing former President Zuma with urgently needed cash to cover his expenses when times were hard even though it was doubtful he could actually repay the loan. Recently, however, some very problems at the bank manifested when it was realised that the bank had illegally been accepting funds from municipalities (which is shouldn’t have done) and there had been fraudulent activity among the management. This caused the bank to go into free fall and ended up with the bank under curatorship.
‘This caused the bank to go into free fall and ended up with the bank under curatorship’
Consumer grew concerned that they might not be able to access their funds (it is common for there to be a “run on the bank” during such a situation – where people try to draw their cash out as fast as they can). Now it seems that the Reserve Bank and curator of VBS have arranged for Nedbank to help provide up to R100 000 per depositor. These depositors would include individual consumers, stokvels and burial societies but definitely not those naughty municipalities.
Crooks At The Top
The bank was hard hit when management made off with around R1.5 Billion and ended up in curatorship when the entire matter (and others) came to light. It was a perfect storm which left the bank in chaos. Now it seems the Reserve Bank has coordinated with Nedbank to come to the rescue of the man on the street.
Nedbank To The Rescue
Starting on Friday the 13th of July retail depositors can head to a Nedbank and produce documentation and be verified (to avoid any scam artists taking chances). Then after signing away their rights to their VBS holdings, they will receive their money in a brand new Nedbank account.
It is estimated that over 95% of VBS former clients (retail depositor clients) should get their funds back. That’s around 20 000 people. That’s a lot of nice new clients for Nedbank and a lot of peace of mind for these consumers who were worried they may never get their hard earned cash back.
Bribes & Kickbacks
Accusations of payoffs and kickbacks now abound with politicians blaming one another and the police and other officials as the whole debacle continues. It is clear that a whole bunch of people are probably going to get into trouble over this matter and the issue has really hit at least seven municipalities hard as they try to deal with the fallout. Fortunately, for now, the 20 000 plus depositor clients of the bank will soon gain access to their funds to get on with their lives and try deal with their own problems following a long time without access to their own money.