The South African Reserve Bank has announced it has appointed a senior counsel to conduct a forensic investigation of the affairs of VBS Mutual Bank.
The central bank placed VBS under curatorship last month after it emerged it was suffering severe liquidity challenges.
This week, the Reserve Bank confirmed nearly R1 billion deposited with VBS could not be accounted for.
The Reserve Bank has appointed advocate Terry Motau to conduct a forensic investigation of VBS Mutual Bank’s affairs after the curator’s probe revealed serious mismanagement of funds.
The central bank has set three objections, firstly to establish whether any of the bank’s business was conducted with the intent to defraud depositors or creditors.
Motau will also need to establish whether any of VBS’s conduct involved questionable or reckless business practices.
The Reserve Bank also wants to know whether there’s been any irregular conduct by the mutual bank’s shareholders, director, executive management or staff.