Judge orders sequestration of VBS executives and shareholders

31 July 2018 - 14:28
By Warren Thompson
Judge orders sequestration of VBS executives and shareholders.
Image: STOCK Judge orders sequestration of VBS executives and shareholders.

Acting judge president Moroa Tsoka has granted an order in the South Gauteng High Court on Tuesday morning to sequestrate the estates of three previous VBS Mutual executives as well as the banks’ largest shareholder.

The court heard arguments in the morning from advocates representing Vele Investments‚ the majority shareholder of VBS Mutual Bank at the time of its curatorship in March‚ and the bank’s previous treasurer‚ Phopi Mukhudobwane‚ on why their late application to oppose sequestration should be heard.

Judge Tsoka ultimately took a dim view of the arguments.

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He ordered that Vele and Mukhudobwane be sequestrated‚ along with the estates of Philip Truter‚ the bank’s previous chief financial officer‚ and Tshifhiwa Matodzi‚ the bank’s previous chairman‚ who had not opposed the motion brought by VBS curator Anoosh Rooplal.

“It’s a great milestone for the curatorship‚ it’s a step in the right direction to potentially recover assets that rightfully belong to the VBS depositors‚” said Rooplal in reaction to the order handed down.

The court will now hear arguments concerning the remaining two individuals that are the subject of sequestration proceedings which include VBS’ previous chief operating officer‚ Robert Madzonga‚ and previous VBS CEO Andile Ramavhunga. Both have opposed the motion.