VBS CEO says he knew nothing about R1.5 billion that was looted under his nose: report

Former CEO of VBS Mutual Bank, Andile Ramavhunga said he knew nothing about the fraud taking place at the bank – which saw executives loot over R1.5 billion right from under his nose.

According to a report by the City Press, Ramavhunga this week submitted an answering affidavit to a submission by the bank’s curators detailing the fraud – in which he (Ramavhunga) and other directors were implicated.

The former CEO did not confirm or deny that the fraud happened – he just simply said no one informed him about it, and he want not present at the alleged meetings where the scheme was said to have been discussed.

He said further that his R15 million bonus – allegedly paid from false accounts – was ‘legit’, as was a R12 million commission he earned by acting as a type of broker, or business hunter for one of the implicated groups.

However it was not clear why he was taking commission work for unrelated companies, and also being paid a salary by one of these groups.

It was revealed this past month, through affidavits submitted by employees in an ongoing investigation, that the bank’s directors manually entered fake deposits into its systems, drawing the non-existent money to bribe officials and allow its directors to buy companies.

Directors would allegedly manually enter in fake deposits from a ‘suspense account’ or a made up source – this would then reflect on the bank’s systems. Real money could then be withdrawn, with the funds covered by the real depositors.


You can read the full report by the City Press online.

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VBS CEO says he knew nothing about R1.5 billion that was looted under his nose: report