ANC NEC hears ‘new VBS Bank’ proposal

The ANC NEC meeting this week heard a proposal for a new VBS Mutual Bank proposal, according to Sunday World information from impeccable sources.
This happened at the Birchwood Hotel in Gauteng, where the ANC was convening its first ordinary NEC meeting since the May 29 polls.

The proposal was tabled by ANC Limpopo provincial secretary Reuben Madadzhe.
There was no opposition to the proposal, except to task the drafting committee to fine-tune the proposal to meet all the legal requirements.

According to our informants, the proposal emanated from the Limpopo provincial conference in 2022. The NEC warmed up to the plan. It said many other banks that had collapsed were in fact resuscitated with renewed leadership, mandate and tight controls.


The general feeling of the NEC members was that the Limpopo ruralitarians, especially in the Vhembe district where the old VBS was based, should not be punished for sins of a few who brought the bank to its knees by looting more than R2-billion.

Applicants will show fitness in banking law

“The applicants will demonstrate proper fitness in terms of the banking laws,” said an NEC deep throat close to the nitty gritties.
“They can actually use the same name because that name currently doesn’t exist. And that license has expired, so you can apply for the same license.

“But you’ve got to do what is required to be done in line with the legislative prescripts.”
Another leader added that the proposal was welcomed because it was a normal ambition which could come from any South African.

As to how realistic and implementable the proposal is, the NEC was of the view that there must be concerted effort to assist those who will register it to tick all the boxes.
“The proposal is there, it’s just a matter of fine-tuning it in terms of the coherence. It depends, I can’t say it’s realistic. But remember anyone who wants can apply for a banking license.”

The old VBS Bank collapsed some five years ago. The collapse followed revelations that took management and influential people outside, included ANC leaders. They had turned it into a feeding trough for narrow material benefit for themselves and their cronies.

Among other ANC leaders who have been fingered were former ANC provincial finance boss Danny Msiza. His ally and former ANC Youth League leader Kabelo Matsepe was  also implicated. As well as incumbent provincial deputy chairperson Florence Radzilani.


Just recently, former VBS head honcho Tshifhiwa Matodzi’s witness statement to NPA was leaked. It implicated several heavyweights in government, the ANC and EFF.

Matodzi implicated top politicians in old VBS looting

Matodzi claimed that former National Treasury administration boss Dondo Mogajane also benefited from the plot. Mogajane issued a mild denial to the claims.
Matodzi also threw mud at EFF top two leaders Julius Malema and his second in command Floyd Shivambu. Both said Matodzi was regurgitating old “lies” that they had denied convincingly five years ago.

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