ANC admits to getting R2 million from VBS

ANC Treasurer general Paul Mashatile has confirmed that the party received a R2 million donation from Vele Investments, owners of VBS Mutual Bank, believed to be tied to the R2 billion that was looted from the bank.

Mashatile confirmed to eNCA on Thursday that the party had received the money as a donation during the 2016 election campaign – though he couldn’t say what it was used for.

He said that the money didn’t come into the ANC’s books, which is why the party couldn’t pick up on it earlier, but it has since been confirmed that the donation was made. Mashatile added that another amount of R250,000 was also donated, which was recorded in the books.

The party said that it is willing to pay back the money.

The admission comes the same week that the South African Reserve Bank’s Prudential Authority applied for VBS to be liquidated, saying that there is no hope of it being saved.

VBS has been embroiled in a massive looting scandal that has been called the biggest bank heist in South Africa’s history.

Investigations into the matter revealed that close to R2 billion was looted from the bank’s coffers by 53 individuals and groups between March 2015 and June 2018.

Several investigations have revealed that municipalities, mostly from Limpopo, deposited money into the bank unlawfully, while executives were alleged to have entered fraudulent deposits to make it appear as if the bank had more cash on hand than it did.

The implicated executives then took money out of the bank to fund lavish and luxury lifestyles, and fund other business ventures.

When the municipalities came to get their money out of the bank, there was nothing left to take out.

Mashatile said that those implicated in the mess have been directed to the party’s ethics committee, adding that the ANC’s leadership will take action based on the recommendations made there.

Read: “Hopelessly insolvent” VBS bank to be liquidated

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ANC admits to getting R2 million from VBS