Another payment may come if the recovery of assets proceeds well.
The VBS liquidation team continues to collect outstanding funds from loan account holders. Picture: Supplied
The second dividend comprises 20% of the concurrent creditors’ claims against VBS, which was placed into liquidation by the high court on 13 November 2018. The VBS saga was a huge blow to these municipalities, which are mainly in rural areas and struggling financially. “This is a substantial dividend, and the team is currently verifying all concurrent creditors’ bank accounts,” Rooplal notes.
“All preferent and secured creditors were fully paid in the first liquidation dividend distribution,” Rooplal notes.Concurrent creditors have recovered 25.6% of their funds so far.Around R400 million has been distributed to municipalities alone, which is “effectively a distribution to South African taxpayers”, he adds.Loan account holders excluded
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