The FDC has recently been named as one of the top three beneficiaries in the VBS looting scandal, which also implicates at least four North West municipalities and other persons of interest such as the King of VhaVenda, Toni Ramabulana. The Chairperson of the Corporation, Hantsie Matseke, previously told OFM News the corporation received an amount of R104 million as a return on its R100 million investment with the bank. During the tabling of the provincial mid-term budget earlier today (on Tuesday), Rockman alluded that the entity risks losing this amount and that the FDC management and the board are still considering their options with regard to this matter.

The North Gauteng High Court has today issued a final order to liquidate the bank after an application by the South African Reserve Bank’s Prudential Authority was unopposed. The bank was placed under curatorship earlier in March after the looting scandal.

Meanwhile, the Office of the Auditor General (AG) is next week, Wednesday 21 November, expected to deliver the audit outcomes of the FDC’s annual reports. The audit outcome is expected to provide clarity regarding the return on investment as suggested by Matseke.

OFM News