Former CEO of VBS Mutual Bank,\u00a0Andile 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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
It was revealed this past month, through affidavits submitted by employees in an ongoing investigation, that the bank\u2019s directors manually entered fake deposits into its systems, drawing the non-existent money to bribe officials and allow its directors to buy companies.<\/p>\n
Directors would allegedly manually enter in fake deposits from a \u2018suspense account\u2019 or a made up source \u2013 this would then reflect on the bank\u2019s systems. Real money could then be withdrawn, with the funds covered by the real depositors.<\/p>\n