The VBS Mutual Bank liquidation team has so far recovered about 25.6% of depositors and municipalities’ lost money since the bank was stolen into insolvency by its managers, auditors, lawyers and politicians, resulting in its implosion in March 2018.
The average recovery during liquidation processes in South Africa is quite low, often less than 10 cents in the rand, research suggests.
Announcing a second round of dividends to creditors last week, liquidator Anoosh Rooplal said 20 cents in the rand of creditors’ claims will be paid out by the end of January 2025.
This is about R458m, of which R291m will be paid to 13 municipalities and the balance to businesses, retail depositors and supplier creditors.
Retail depositors include people who had claims of more than R100,000. These were typically people paid out the first R100,000 through the South African Reserve Bank guarantee.
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