VBS liquidator Anoosh Rooplal said some of the defunct bank’s creditors have received first dividends since the bank was placed under liquidation in 2018.Some R2.3 billion was stolen from the bank through fraud.
Rooplal said on Thursday that he has started paying the first liquidation dividend to preferential and concurrent creditors after the Master of the High Court gave him the green light on 28 January 2022.
“A first liquidation dividend of 7 cents in the Rand is being paid to all proven concurrent creditors. This amounts to approximately R159 million, of which approximately R110 million will be paid to relevant municipalities,” said the liquidator in the statement.
He said concurrent creditors who lodged valid claims include 13 municipalities, various business depositors, retail depositors and supplier creditors.
Retail depositors who still have to be paid had only those who had over R100 000 of their money in VBS. Retail depositors were paid up to R100 000 in 2021, which came from the SA Reserve Bank guarantee. They received those claims via Nedbank.
Although preferential creditors include ex-employees of VBS Mutual Bank, Rooplal said they, too, have received payment of some of their claims. The 26 employees received a final settlement of up to R28 000 per person.
“Notwithstanding the fact that massive fraud and theft of some R2.3 billion was perpetrated against this bank, we believe we have made good inroads to recover monies owed to the creditors of the Bank,” said Rooplal.
The payment of this dividend does not affect clients that still owe VBS money. Rooplal said their contracts remain valid and enforceable.
This story has been published from a wire agency feed without modifications to the text.