Political parties asked VBS for funds

More political parties have been drawn into the unfolding VBS Mutual Bank money scandal as chief executive officer Andile Ramavhunga testified that the DA and the Economic Freedom Fighters (EFF) also asked the embattled bank for money.

Ramavhunga told the probe into the affairs of VBS that, in the same way that the ANC had approached the bank for sponsorship of events such as workshops, the opposition parties had also come “knocking”.

The forensic investigation, led by Advocate Terry Motau SC, into possible fraud and malfeasance at VBS is still in progress.

But, said Ramavhunga, he did not remember if any payments were made to the opposition parties.

“The EFF has asked us, but I do not remember making payment for them,” he said, adding that even “the DA has approached us before”.

He denied that the United Democratic Movement had also spoken to the bank, but said that unions and maskandi music groups had asked for money. He said the purpose of sponsorships was to promote the VBS brand.

“Often, they would allow us to put branding up so the delegates would see our name at the event.”

City Press this week saw two letters that the DA wrote last week to the EFF and the ANC calling on them to disclose any monies received from VBS and ensure immediate “repayment” of those funds.

In the copy sent to ANC secretary-general Ace Magashule, the DA’s Solly Malatsi said it was greatly concerning that the recent allegations against the bank suggest that the ANC was implicated in the VBS scandal.

He cited reports that the bank’s records showed a payment to the ANC of R250 000 on January 6 – a week before the ANC’s gala dinner – marked as “ANC gala dinner event”.

He said that if the ANC was “serious about making a clean break with the past and fighting corruption, the party would distance itself from the money that has been tainted by fraud”.

Malatsi made a similar request to EFF general secretary Godrich Gardee, saying that if the party had received any donations from VBS, they ought to be paid back because they were “public funds”.

According to a civil case that is due to sit before the high court on Tuesday, at least R1.5 billion kept by depositors in VBS, including municipalities, has allegedly been looted by the bank’s executives and their associates.