FORMER PIC OFFICIALS ORDERED TO PAY BACK MONEY THEY BENEFITED FROM LOOTING OF VBS.

On Monday, the High Court in Pretoria, ordered Ernest Nesane and Paul Magula who were key PIC officials appointed to guard their employer’s R530-million stake in VBS Mutual Bank, to pay back money they benefited during the looting of the bank. The accused enabled the bank’s managers, as well as businessmen and politicians, to loot the bank into insolvency.

Former PIC officials and VBS looters Nesane and Magula must pay back R11.2-million and R12.2-million, respectively, in cash and penalties owed to Vele Investments. Both confessed to having received some R7-million in VBS loot when questioned by advocate Terry Motau and law firm Werksmans during the 2018 investigation into the bank’s woes.

Nesane was ordered to pay back R5.6-million to Vele Investments money he gratuitously received from the VBS-affiliated company which is now in liquidation. Meanwhile , Magula was ordered to pay back R6.1-million in money received, and an equal amount in penalties because of his collusive and fraudulent dealings.

Interest on the full amount at a rate of 7% per annum is payable, calculated from the date of the judgment to the date of final payment. The court further ordered Nesane and Magula to pay the costs of the court application, including costs of senior and junior counsel, on an attorney and own client scale. #ladi_jaja?

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