South African court allows Reserve Bank to wind up VBS bank

Many South African Municipalities had deposits with the bank. [Photo: Courtesy]

JOHANNESBURG - A South African court on Tuesday approved an application by the central bank to wind up VBS Mutual Bank, which was caught up in a corruption scandal this year.

A report commissioned by the South African Reserve Bank and titled “The Great Bank Heist” found that at least 1.9 billion rand ($132 million) had been looted from VBS and that its financial statements had been misstated.