Reading Time: 2 minutes
The Public Investment Corporation (PIC) on Monday said it would work closely with the curator of VBS Mutual Bank to help bring the bank out of crisis.
In a statement on Monday the PIC said it had noted a decision by the SA Reserve Bank to place VBS Mutual bank, which shot to fame when it granted former President Jacob Zuma a home loan of R7.8 million in 2016, under curatorship.
“The PIC, on behalf of the Government Employees Pension Fund, is one of the shareholders in VBS Mutual Bank, holding approximately 27% equity interest of the mutual bank,” the statement said.
“The PIC will work closely with the appointed curator, Sizwe Ntsaluba Gobodo and all other stakeholders, to assist the bank to navigate through this difficult situation and hopefully emerge much stronger.”
The announcement that the bank would be placed under curatorship came on Sunday from SARB governor Lesetja Kganyago.
Finance Minister Nhlanhla Nene approved the recommendation, saying it was meant to “nurse the bank back to health”.
The aim of curatorship was ultimately to turn the mutual bank around and was in contrast with liquidation, where the mutual bank was closed down, the Treasury said on Sunday.
VBS’ placement under curatorship follows liquidity challenges stemming from the termination of deposits from municipalities, who are not allowed to use mutual banks according to municipal finance laws.
Click below to watch a related video:
