Black banks: Like the African bank VBS also failed, clients and investors suffer

Die Vryburger

Black banks: Like the African bank VBS also failed, clients and investors suffer
Black banks: Like the African bank VBS also failed, clients and investors suffer. Photo: Die Vryburger

It seems that the black banks have struggled and eventually failed as many clients and investors suffered extreme loss. Four years after the collapse of the African Bank only R1,1 billion was paid to creditors while an amount of more than R9 billion was owed.

According to the latest financial report, it appears that the “bad bank” is not able to properly pay the investors and creditors.

VBS Mutual Bank was recently liquidated due to large scale irregularities, and resulted in major losses for municipalities that invested money in the bank.

Read the original article in Afrikaans on Die Vryburger

South Africa Today – South Africa News

SOURCEDie Vryburger