VBS Mutual Bank’s financial statements for the year ending in March 2017 were allegedly cooked, false and flawed in many respects, the indictment against those accused of stealing from the bank shows.
The eight accused are former VBS Mutual Bank and Vele Investments chair Tshifhiwa Calvin Matodzi, former VBS Mutual Bank CEO Andile Ramavhunga, former CFO Philip Truter, former treasurer Phophi Mukhodobwane, former KPMG partner Sipho Malaba, former police officer Avashoni Ramikosi, and former Public Investment Corporation executives Enerst Nesane and Paul Magula.
The 80-page indictment presented on Thursday morning by prosecutors in the Palm Ridge Regional Court, east of Johannesburg, shows the following:
- An asset described as “Cash and cash equivalents” in the sum of R802,427,245 was falsely inflated by an amount of R690,326,847;
- An asset described as “Loans and advances” in the sum of R1,081,831,081 was falsely inflated by an amount of R351,956,095;
- A liability described as “Amounts owed to depositors” in the sum of R1,553,659,282
- was falsely inflated by an amount of R261,308,970;
- An equity described as “Permanent interest bearing shares” in the sum of R150,473,996 was falsely inflated by an amount of R89,044,352.
VBS Mutual Bank's financial statements: 'Cooked, false and flawed'
Image: Alon Skuy
VBS Mutual Bank’s financial statements for the year ending in March 2017 were allegedly cooked, false and flawed in many respects, the indictment against those accused of stealing from the bank shows.
The eight accused are former VBS Mutual Bank and Vele Investments chair Tshifhiwa Calvin Matodzi, former VBS Mutual Bank CEO Andile Ramavhunga, former CFO Philip Truter, former treasurer Phophi Mukhodobwane, former KPMG partner Sipho Malaba, former police officer Avashoni Ramikosi, and former Public Investment Corporation executives Enerst Nesane and Paul Magula.
The 80-page indictment presented on Thursday morning by prosecutors in the Palm Ridge Regional Court, east of Johannesburg, shows the following:
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The true financial position of VBS Mutual Bank as at 31 March 2017 was as follows:
The bank was insolvent at the time, the indictment shows.
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