Fidelity says logistical problems led to cash shortages at VBS Mutual Bank
Fidelity Cash Solutions admitted that it had encountered logistical problems which led to delays in the delivery of cash to VBS Mutual Bank’s Thohoyandou branch this week.
VBS Mutual Bank‚ a relatively unknown bank until it came into the spotlight when it lent President Jacob Zuma R7.8-million to pay for the non-security-upgrades at his Nkandla home‚ experienced some cash shortages at its Thohoyandou branch.
There had been public complaints from the bank’s customers in recent days as they were unable to withdraw the money they had been saving for the Christmas season. Some had claimed that the bank was insolvent.
The bank said this cash shortage problem stemmed from logistical issues experienced by its cash management security supplier‚ Fidelity Cash Solutions‚ which led to delays in delivery of physical cash to the said branch.
The bank said this had been sorted.
“Yes we did experience logistical issues as claimed and we have insured that cash deliveries would be on time‚” CEO of Fidelity Security Group Wahl Bartmann said.