CAPETOWN – The Democratic Alliance has asked the Registrar of Banks Kuben Naidoo to immediately establish a commission of inquiry into troubled VBS Mutual Bank and municipalities which illegally deposited funds with VBS.
“The dire state of affairs at the institution [VBS] necessitates an urgent and thorough investigation to ascertain the full extent of the problems at the institution given the increasing number of allegations and the potential loss of billions of rand of municipal deposits,” DA spokesperson Kevin Mileham said on Sunday.
In early March, the South African Reserve Bank placed VBS Mutual Bank under curatorship.
The terms of reference for this commission should follow similar processes taken by the registrar in the African Bank instance, he said.
“The DA cannot sit by idly while municipal officials, lawyers, auditors, and bank staff, shareholders and directors squander the resources of municipalities through illegal or risky financial activities. We will relentlessly continue to hold all individuals and entities who nonchalantly abuse public funds accountable. The DA will not permit corruption or financial maladministration to cripple service delivery to people on our watch,” Mileham said.