VBS customers still queuing to access funds after disaster bank fraud

Customers of South African bank VBS are still queuing outside local branches to try and access their funds after five bankers took at least 1.5bn rand causing the bank to collapse in March this year.

The collapse left dozens of people lining up to try and get their life savings back with a few having suffered anxiety attacks over the issue.

Not only customers are suffering from the bank fraud, the scandal claimed the jobs of senior managers at KPMG South Africa and the Public Investment Corp (the largest African money manager).

It’s also put at risk 1.65bn rand of illegal deposits made by 13 municipalities, which the government has said won’t be bailed out.

The VBS fraud, one of the biggest bank heists in South Africa by bankers, was blamed on chairman Tshifhiwa Matodzi and four others. They defrauded depositors by fabricating accounts and fictitious deposits, bribing officials and transferring funds to themselves.

South Africa’s fourth-largest bank, Nedbank Group, with support from the central bank, stepped in to help with payouts for the VBS customers. The clients are being migrated to Nedbank so they can access more of their money.