President Cyril Ramaphosa must extend the powers of the state of capture inquiry or establish a new inquiry into alleged corruption at VBS Bank, says United Democratic Movement (UDM) leader Bantu Holomisa.
His call follows allegations in weekend reports that the collapsed bank’s funds were used to finance the flashy lifestyle of Venda king Toni Ramabulana and several executives linked to VBS. The spending spree included a helicopter, a Clifton dwelling worth R29m and various luxury cars, the Sunday Times reported. Illegal deposits of about R1.5bn were alleged to have been used from municipalities, many of which are now unable to fund service delivery.
"It’s time for the police and prosecuting authority to get involved," Holomisa said.
"Ramaphosa must extend [the] terms of reference of the state capture [inquiry] or institute a different inquiry," he said.
Although the UDM had asked Ramaphosa weeks ago to extend the state capture inquiry to include allegations of maladministration at the Public Investment Corporation, he had not taken action yet, Holomisa said.
Presidency spokeswoman Khusela Sangoni could not be reached for comment.
The Sunday Times reported that Ramabulana disputes culpability and claimed his name was used and he was left with a R240,000 monthly bill for luxury goods and property that he was told were bought for him. He threatened to lay charges against two Vele Investments executives.
Vele is a controlling shareholder in VBS.
However, City Press claimed to have bank statements showing the king received cash through VBS, which also financed his vehicles.
About R900m in VBS deposits is unaccounted for. The bank is under curatorship while an investigation continues.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.