Seven of the eight suspects arrested for their alleged involvement in the Venda Building Social (VBS) Mutual Bank scandal are expected to appear in the Palm Ridge Regional Court in Gauteng on Thursday morning.

One of the suspects remains in quarantine due to the coronavirus.

The arrests were made on Wednesday nearly two years after the theft of more than R2-million from the bank was exposed.

In what is dubbed as one of the biggest bank robberies in the country, the arrested group faces 47 counts of fraud, racketeering, corruption, theft and money laundering.

It’s believed stokvel groups, pensioners and 20 municipalities lost billions of rands.

Arrests welcomed

The Public Investment Corporation (PIC) has welcomed the arrests of suspects involved in the collapse of VBS mutual bank.

The PIC was a significant shareholder in VBS when it was placed under curatorship by the Prudential Authority of the South African Reserve Bank (SARB).

It says the arrests is an important step in ensuring those who were responsible for the collapse of VBS are held accountable.

The National Director of Public Prosecutions Advocate Shamila Batohi has also welcomed the arrests.

One of the investors in the liquidated VBS Mutual Bank and former Board Chairperson, Madambi Muvhulawa, says investors and depositors are also pleased with the arrests. 

Muvhulawa says properties of those implicated in the looting must be sold for depositors to recoup their money. 

Ordinary depositors who invested over R300 000 each have not yet received their money back.

Senior Legal Journalist Karyn Maughan gives analysis of the arrest and its implications:

-Additional reporting by SABC News.