Push for a new state bank to replace VBS: report
BUSINESS TECH / 18 NOVEMBER 2018 - 20.03 / STAFF REPORTER
The Economic Freedom Fighters (EFF) are pushing to establish a new state-owned bank to take over the role of the now defunct VBS.
The party has already put forward a private members’ bill to that effect.
Image - Web
According to a report by the City Press, EFF leader Julius Malema wants the bank to fulfill the same role as VBS, which provided loans and bonds to people building homes on communal land.
Malema expressed shock at his own party’s failure to oppose the shutting down of VBS bank this week, which was passed without challenge.
According to Malema, VBS was a ‘breath of fresh air’, being a black-owned bank in a white-dominated sector.
The bank had to be liquidated after it was found that close to R2 billion had been looted from its coffers by management and other related parties.
Most of the money was stolen from municipalities which weren’t supposed to have put million of rands in the bank in the first place.
Malema said that there was nothing wrong with VBS taking money from municipalities and investing it in other things – the problem, he said, was that management instead took the money for themselves.
Several parties, including the EFF, ANC and the SACP have been implicated as beneficiaries of the looted money.
While the ANC has admitted to receiving R2 million from the bank, the EFF has denied its bill (of over R10 million) and the SACP has threatened court action against the City Press for claiming it received R3 million.
In a separate report, the City Press has published a proof of payment receipt showing that a service provider was paid R3 million relating to a SACP conference.
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER