Workers at VBS Mutual Bank have received letters terminating their employment.

Sowetan has seen a letter signed by Neridha Moodley of OBO curatorship team to the employees, informing them that their services were terminated due to retrenchment.

"The employer [VBS Mutual Bank] has in the last financial year suffered losses as a result of mismanagement as well as acts of fraud committed by the employer's leadership.

"As a result, this letter serves as confirmation that your employment will terminate effective 12 October 2018 due to retrenchment based on operational requirements."

Yesterday, Venda King Toni Mphephu Ramabulana, who is listed in a report that revealed the extent of looting of the bank's finances, pleaded ignorance, saying he always received donations from several people and as such deemed them to be legitimate, untainted and bona fide.

"I irrevocably offer to repay any amount which will be shown to have been proceeds of the illegalities in the report as soon they are computed and am directed where the repayment must be made and the terms of such repayments.

"The financial ruin, the cold theft to the vulnerable people, is inimical to the vision my father had as a founding member of this building society. My heart goes out to those who were harmed by this ruthless enterprise," the king said.

The presidency yesterday rejected a City Press report that President Cyril Ramaphosa failed to take action on the VBS Bank saga despite being alerted to irregularities back in 2017. In a statement, the presidency claimed allegations that the president knew were baseless and unsubstantiated.

"President Ramaphosa has no knowledge of any meeting where he is said to have met any person associated with VBS Mutual Bank where he was purportedly briefed on the matter," the statement read.

"Likewise, the claim that [he] was forewarned about the impending implosion of VBS Bank is unsubstantiated.

"The. relevant law-enforcement and prosecutorial authorities should act with haste and vigour against those behind this unconscionable act of criminality against the most vulnerable in society. South Africans should not be misled by attempts to divert attention away from those responsible."