For weeks, VBS Bank has hogged headlines after landing itself into some trouble and needing multiple lifelines to avoid a financial disaster for its clients.
Although many struggle to understand exactly what the problem is or where it began.
VBS was established in 1982 and initially operated as Venda Building Society and has since become a wholly black-owned specialist corporate finance and retail bank. They have since operated under the radar but were thrust into the spotlight a few years ago when it emerged that they had granted former President Jacob Zuma a bond for Nkandla.
But most recently, the bank has been under the spotlight for being placed under curatorship as their books do not balance.
According to City Press, a Treasury executive by the name of Ismail Momoniat instructed about 15 municipalities to stop depositing funds into their VBS accounts because the Municipal Finance Management Act (MFMA) forbade them from investing in a mutual bank.
A mutual savings bank is a financial institution chartered by a central or regional government, without capital stock, that is owned by its members who subscribe to a common fund. From this fund claims, loans, etc., are paid. Profits after deductions are shared among the members.
The South African Reserve Bank then placed VBS under curatorship due to a liquidity crisis caused by National Treasury instructing municipalities to withdraw their deposits.
This crisis is believed to have been worsened by VBS' shareholder's unwillingness to loan the bank the money it needed to get out of this mess. A move many believe was made with the intention to weaken the bank so that parties close to the shareholders could take over the bank. Parties such as black-owned investment group Lebashe Financial Services where Warren Wheatley (Tatum's husband) is one of three directors.
Lebashe was only registered last year but has the millions of Rands needed to make the moves required to give VBS a helping hand.
Wheatley has come forward to deny these claims, which have previously been stated by the likes of United Democratic Movement (UDM) leader Bantu Holomisa. “We have a few PIC funders but that’s within the mandate. We’ve already paid back most of the money and the profit to the PIC and there’s nothing unusual about this,” stated Wheatley to Eyewitness News.
Wheatley and Keshwar recently welcomed a new baby whom they named Christian James Wheatley.
What to read next: Take a look at Tatum Keshwar's adorable baby shower
Main image credit: instagram.com/tatumkeshwar