A former VBS Mutual Bank non-executive director must be held accountable for millions he received from the institution.
LIQUIDATORS of the VBS Mutual Bank are gunning for one of the bosses of the now defunct financial institution.
Thifhelimbilu Ernest Nesane, his wife Tshianne Onica Nesane and the Nesane’s financial advisor, Rudzani Morris Nndwammbi, must pay back R5.6 million they received from VBS.
The SA Reserve Bank (SARB-)-appointed curator found that the couple and Nndwammbi are liable for the millions they got from VBS.
Nesane was executive head responsible for legal counsel, governance, and compliance for the Public Investment Corporation (PIC).
The PIC appointed Nesane to the VBS board as the entity held about 26% of the issued shares in ill-fated bank.
In December, Gauteng High Court, Pretoria, Acting Judge John Richard Meaden was brutal on Nesane, finding that the couple and Nndwammbi are liable for the alleged the theft.
Nesane is facing charges of offering existing VBS shareholders, such as the PIC, participation in the second rights issue where existing shareholders would be entitled to take up two shares for every one share held by the company.
Additionally, VBS among VBS shareholders, only Vele Investments participated in one of the rights issue that resulted in a dilution of the PIC’s shareholding from approximately 26% to approximately 12% due its non-participation in the second rights issue, in which Vele ostensibly became an approximate 53% shareholder in VBS.
Vele Investments unlawfully and falsely and with the intention to defraud and the prejudice of the PIC, in circumstances where there was a fiduciary duty on Nesane to act in the best interest of the PIC, cause and permit certain amendments to be made to the terms and conditions of the facility agreement between VBS and the PIC.
The former VBS bosses face charges of contravening the Prevention and Combating of Corrupt Activities Act including money laundering and benefiting from proceeds of unlawful activities, among other charges.
loyiso.sidimba@inl.co.za