The group is facing 47 counts, including of racketeering, theft, fraud, corruption and money laundering
Seven of the eight suspects arrested in connection with the collapse and looting of VBS Mutual Bank appeared in court on Thursday morning.
The group, which includes the bank’s top executives, appeared in the Palm Ridge regional court after the search-and-seizure operation was conducted on Wednesday by the Hawks.The state has informed the court that it will not oppose bail for the suspects.
A report on the scandal by advocate Terry Motau detailed a criminal enterprise perpetrated at the behest of executives and benefiting politicians who illegally deposited money with the bank in return for backhanders. It detailed how one mayor allegedly pleaded for “Christmas” — slang for a monetary gift — for herself and the speaker of her municipality.
In March 2018, the Reserve Bank had VBS Mutual Bank placed under curatorship after withdrawals by municipalities caused a cash crunch. The Bank then appointed law firm Werksmans Attorneys and Motau to establish reasons for the bank’s failure. Municipalities in some of the country’s poorest areas with shoddy local services had about R1.2bn deposited at VBS Mutual Bank when it went under.
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