VBS depositors outraged over prioritised municipalities reimbursement

Disgruntled VBS Mutual Bank depositors have expressed outrage at the news that municipalities who deposited money in the collapsed bank, would be the first to be reimbursed. This follows the recovery of R670 million by the liquidators of the collapsed bank. The recovery of the money by liquidators had brought hope that verified creditors would be reimbursed monies deposited to the institution before its collapse in 2018.

Madambi Muvhulawa is one of the unhappy VBS bank depositors.

Muvhulawa says, “We have tried previously, that we open the means of communication, but they’re not interested in communicating with us. They told us that they are only responsible to the Reserve Bank, not us. We didn’t feel good about it because those who have saved money the legal way, they are depositors and those who have saved the illegal way, they are the municipalities. So, we don’t understand why the municipalities are treated differently as if they’ve deposited their money legally. We feel, they should come last, if there’s any money left- but the depositors, we should be paid first.”