VBS curator says the bank’s 2017 audited results are not reliable

The curator of VBS Mutual Bank, Anoosh Rooplal, has announced that the bank's 2017 audited results are not reliable due to misstatements, poor governance, and management issues. Rooplal revealed that the financial statements have been removed from the website to prevent users from relying on inaccurate information. The situation at VBS has evolved from a liquidity crisis to a full-blown governance and management challenge. Despite the challenges, the focus remains on rescuing the retail depositors, who form the core of the bank's customer base. Rooplal expressed optimism about salvaging this core aspect of the business through recommendations made to the Reserve Bank. One of the key recommendations made by Rooplal is the appointment of Advocate Matatu to lead an independent investigation. This investigation aims to uncover any irregularities and recover assets for the benefit of depositors and creditors. The curator emphasized the importance of this process running parallel to his efforts to move the bank forward. With a focus on retail depositors, which include individuals, burial societies, and ordinary South Africans, Rooplal is determined to preserve this core set of customers. As the discussions with the Reserve Bank continue, the possibility of splitting VBS Mutual Bank's assets is being considered. This strategy, similar to what was done with African Bank, involves segregating bad assets from good ones to allow the viable part of the bank to continue operating. Rooplal noted that this option is on the table and is being jointly evaluated with the Reserve Bank. The revelations about VBS Mutual Bank come amidst a broader scandal involving KPMG, which recently suspended a top executive linked to the bank. The ongoing investigations and efforts to salvage the bank highlight the complexities and challenges faced by financial institutions in the wake of mismanagement and fraud. The future of VBS Mutual Bank hangs in the balance as stakeholders navigate a path towards stability and accountability.