Last year, the National Treasury instructed municipalities to stop sending deposits to the bank due to a stipulation in the Municipal Finance Management Act that requires that they must deposit their money only with a fully registered bank. As a result, several councils withdrew more than R1-billion in deposits.
Mutual banks in South Africa do not offer the full range of services that commercial banks do and the governor said municipalities were not allowed to make deposits with such entities in the first place. "After an exhaustive process of engaging with the board, management and shareholders, there was no other solution besides curatorship", he told journalists. "The Financial Services Board has indicated that there are other related parties that may be impacted by the curatorship", said Treasury.
The City Press newspaper reported on Sunday that the bank is expected to be placed under curatorship this week by the SARB.
"The Treasury and Reserve Bank conduct goes against radical economic transformation and must be condemned since it deviates from the objectives of transformation as articulated by 54th Congress to change the institutions and policies and laws in order to advance transformation", it said in a statement.
"The curator is given the legal means to create the necessary mechanisms to implement a resolution plan which will ensure the long-run sustainability of VBS".
Treasury explained that restricting municipalities from investing in mutual banks is consistent with ensuring municipal funds are managed responsibly.
Kganyago said it was highly risky for the bank to take sizeable municipal deposits that were short-term and lend them out long-term. This would ultimately lead to liquidity problems.
Stock Bulletin: Laredo Petroleum Holdings Inc (LPI) The stock has a consensus rating of "Hold" and an average target price of $12.91. (NYSE:LPI) on Monday, May 15 with "Buy" rating. Oppenheimer maintained it with "Buy" rating and $3000 target in Friday, August 4 report. (NYSE:LPI) rating on Monday, April 3.
IPP signing blocked by late-night interdict The North Gauteng High Court, based in Pretoria, will hold a full hearing into the matter on March 27, Numsa said. Extracting fossil fuels from underground is a "resource play".
"In the past few weeks, National Treasury and the Reserve Bank have been working closely to try and save the bank so as to protect ordinary depositors", Treasury said.
In a statement issued on Monday the PIC, which has a 27% shareholding in VBS, said it has noted the South African Reserve Bank's (SARB's) decision to place the bank under curatorship given its liquidity crisis. Kganyago dismissed rumours that the bank was being punished because it was black-owned, saying all banks were equally monitored.
"The colour of money is red, it is green, yellow, it's blue".
"In the end, we were faced with a well-organised and powerful system, which does not tolerate growing black banks and black excellence", he said.
Following the briefing on Sunday, Treasury issued a statement indicating that curatorship is a better option than liquidation. Placing a bank under curatorship is a reflection of poor bank supervision on the part of the Reserve Bank, and also an act that will prohibit black people's participation in the ownership and control of financial services institutions.
"National Treasury's actions are trying to balance the need for a more diversified small banking sector against the need for well-run and well-governed municipalities".
VBS came into prominence in 2016 when it loaned former president Jacob Zuma R7.8 million to repay the state for the cost of non-security upgrades to his rural homestead in Nkandla, KwaZulu-Natal.
Better handling and cornering is enabled with a wide 130 mm rear tyre, long 1347 mm wheelbase, and mono shock rear suspension. Honda has prepared X-Blade with keeping the youth in mind and that's why it has been made with an aggressive design.
Like any swindle, it is always better to take steps to prevent identity theft from happening than to react to it after the fact. Any of these scenarios is a strong indication that you may be the victim of tax identity theft.
Claire Foy blew critics and audiences away with her turn as Queen Elizabeth on Netflix's expensive royal drama The Crown . However, I would like to state for the record that her getting paid less than Matt Smith is bullshit of the highest order.
In the interview, he said: "It's going to be unexpected and it's going to be grand.I can't get into too much detail". Taylor collaborated with her frequent music video director Joseph Kahn for the new visual.
Magistrate John William McNally Jr. set her bond at $30,000 - the standard $15,000 for each second-degree felony count. Get background checks, talk to neighbors, friends, and family members before letting anyone watch your children.
Not only the film has been an emotional journey for the actor, but the film also turned out to be a learning experience for Varun. Bollywood actor Varun Dhawan says his upcoming film " October " came as a much-needed opportunity in his film career.
After $0.46 actual EPS reported by Banco Santander-Chile for the previous quarter, Wall Street now forecasts 13.04% EPS growth. Deroy & Devereaux Private Investment Counsel holds 1.26% or 113,998 shares. 72 funds opened positions while 122 raised stakes.
The current share price indicates that stock is -18.47% away from its one year high and is moving 11.31% ahead of its 52-week low. Goodman Financial Corp bought a new position in shares of Occidental Petroleum during the fourth quarter worth about $116,000.
Ngata played in just five games in 2017, after suffering a torn biceps in Week 5. "I don't want to have problems when I'm older". That said, Ngata can still be a solid early-down gap-clogger who specializes in stuffing the run.
In 1995, he retired from fashion but remained active as an antiques expert for Christie's, the Louvre museum and Versailles. Legendary Italian-born creator Valentino told Agence France-Presse that he tried to get a job with Givenchy when he was 17.
Albert Wilson Signing with Miami Dolphins
Aikens typically doesn't play much from scrimmage but he's been a valuable special teams player during his four years with Miami. Amendola and Wilson will help replace Landry, whom the Dolphins have agreed to the Cleveland Browns for two draft picks.
Toys R Us is said to miss vendor payments as woes mount
In recent years, the toy retail giant has been losing tons of its customers to places like Amazon, Walmart and Target. Company executives have said those stores would begin liquidating inventory in February and be closed by mid-April.
State of Decay 2 Collector's Edition Announced
State of Decay 2 Collector's Edition will feature an exclusive Steelbook Case, Zombie Mask, and thumb drive. "At Xbox, we focus on giving players a lot of choices to show their love for our franchises".
Israel Escapes Early Elections as Coalition Stabilizes
Lieberman has stuck to his position of opposing the conscription bill, but says he will not quit the government over it for now. Another secular party in the right-wing coalition, the economics-focused Kulanu, has also expressed trepidation over the bill.
Case Keenum reportedly to sign with the Broncos
That's at least $10 million less than what fellow free agent quarterback Kirk Cousins is expected to be paid this offseason. When free agency officially opens Wednesday, Keenum is expected to receive a two-year, $36 million deal, according to Klis.