PIC SAYS WILL WORK WITH CURATOR TO NURSE SOUTH AFRICA’S VBS MUTUAL BANK BACK TO HEALTH

JOHANNESBURG– South Africa’s Public Investment Corporation (PIC), a quasi public body which manages the pension funds of the country’s public sector employees and is the biggest asset manager in the country,says it will work closely with the curator of VBS Mutual Bank to help bring the bank out of crisis.

In a statement here Monday, the PIC said it had noted a decision by the South African Reserve Bank (SARB) to place VBS Mutual bank — which shot to fame when it granted former President Jacob Zuma a home loan of 7.8 million Rand (about 660,000 US dollars) 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 per cent 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 is to ultimately turn the mutual bank around and is in contrast to liquidation, where the mutual bank will closed down, the Treasury said on Sunday.

The decision to place VBS under curatorship followed liquidity challenges it faced stemming from the termination of deposits from municipalities, which are not allowed to use mutual banks according to municipal finance laws.

Source: NAM NEWS NETWORK