High court grants provisional sequestration against VBS bank former CEO and CFO

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JOHANNESBURG, August 4 – The high court in Johannesburg on Friday granted provisional sequestration orders on VBS Mutual Bank’s former chief executive, Andile Ramavhunga, and the previous chief operations officer of the embattled bank, Robert Madzonga.

This follows Tuesday’s High Court ruling in which acting deputy judge-president Moroa Tsoka granted provisional sequestration orders on VBS executives including former chairman Tshifhiwa Matodzi, Phillipus Truter and Phopi Mukhodobwane over the disappearance of monies amounting to at least R1.5 billion from the bank’s coffers.

Madzonga is the group chief executive officer of VBS bank’s main shareholder, Vele Investments, which according to the bank’s curators founding affidavit benefited some R745 million from alleged fraud carried out by bank executives. Vele Investments was also liquidated.

Last month, the curator of VBS, Sizwe Ntsaluba Gobodo, instituted an urgent application in the high court against Vele Investments for its liquidation and the sequestration of the estates of executives.

In March, the South African Reserve Bank (Sarb) placed VBS under curatorship with immediate effect after  the bank experienced increasing liquidity challenges over the past 18 months. (ANA)