Several top VBS Mutual Bank insiders, including board members and the chief KPMG auditor for the bank, have been arrested in the early hours of Wednesday.
The National Prosecuting Authority (NPA) conducted a massive operation on Wednesday.
Daily Maverick reported that four bankers, two officials from the Public Investment Corporation (PIC), a KPMG auditor and a lieutenant-general in the South African police have been arrested in connection with their instrumental role in the theft of over R2,7-billion from VBS Mutual Bank, a bank mainly catering for the poor. This group includes four chartered accountants and an attorney.
Those arrested are:
- Tshifhiwa Matodzi, chairman of VBS and Vele Investments (a company which obtained the majority shareholding in VBS through an alleged scam);
- VBS treasurer Phophi Mukhodobwane;
- VBS CFO Philip Truter;
- Non-executive directors of VBS and nominees of the PIC Ernest Nesane and Paul Magula;
- KPMG auditor Sipho Malaba;
- CEO and executive director of VBS Andile Ramavhunga; and
- VBS non-executive director and chair of the bank’s audit committee, lieutenant-general Avhsahoni Ramikosi.
Suspects will appear in court tomorrow.