By: Bright Ntuli
The Congress of South African Trade Unions (COSATU) has welcomed the recovery of R670 million by the liquidators of VBS Mutual Bank.
Through the efforts of the appointed liquidators, verified creditors—including individuals, businesses, and municipalities—will be reimbursed for funds deposited with the bank before its collapse in 2018. The bank’s downfall, triggered by large-scale fraud and mismanagement, resulted in significant financial losses for depositors, particularly poor and elderly account holders.
COSATU spokesperson Zanele Sabela has called for accountability regarding municipalities that unlawfully invested public funds meant for service delivery into VBS. The trade union federation insists that appropriate legal and financial consequences be enforced to prevent similar misconduct in the future.
The VBS scandal saw billions of rands looted through fraudulent schemes involving high-profile business and political figures. Despite several arrests and legal proceedings, concerns remain over the full recovery of stolen funds and the long-term impact on affected communities.
