VBS scandal rekindled: CEO's post exposes ANC, EFF betrayal while Capitec shines as ethical banking model

Key topics:Viral post reignites outrage over VBS Mutual Bank collapseCapitec celebrated as ethical, people-first financial institutionPublic demand grows for accountability in political leadership.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.The auditorium doors will open for BNIC#2 on 10 September 2025 in Hermanus. For more information and tickets, click here..By Kerry Lanaghan.A social media post by Garth Carstens, CEO of Vantage Land Sea Sky Ltd, has gained traction this week and reignited public outrage over the infamous VBS Mutual Bank scandal. The post contrasts the looted people's bank with the rise of Capitec Bank as a model of ethical, people-first banking. The commentary follows renewed international scrutiny of South African politics after a meeting between President Cyril Ramaphosa and former US President Donald Trump.The VBS Mutual Bank was once hailed as a lifeline for the underbanked in rural areas and initially started offering financial services in disadvantaged communities, particularly in the Venda homeland. However, VBS Mutual Bank collapsed under the weight of corruption when more than R2 billion was siphoned off by politically connected elites. This money belonged to pensioners, low-income savers, and municipalities. The scandal has been described as one of the most egregious betrayals of public trust in post-apartheid South Africa.Key figures implicated in the VBS looting include:Brian Shivambu, brother of former EFF deputy leader Floyd Shivambu - who has now joined Jacob Zuma's uMkhonto we Sizwe party. Danny Msiza, former ANC Limpopo treasurerFlorence Radzilani, ANC Limpopo deputy chairA web of municipal officials, executives at the Public Investment Corporation (PIC), and complicit auditors.The post accuses both the ANC and the EFF of cloaking themselves in pro-poor rhetoric while exploiting state-linked financial institutions for personal gain.In contrast, Capitec Bank - founded in 2001 by Riaan Stassen, Michiel le Roux, and partners - is a counterexample of ethical banking. Built on transparency, simplicity, and accessibility, Capitec now serves over 24 million customers and offers tools that empower rather than exploit people.“VBS enriched a politically connected few and left devastation in its wake. Capitec empowers millions with real financial tools, trust, and accountability,” the LinkedIn post reads.The commentary comes at a time when trust in political institutions remains fragile. With growing public demands for accountability and reform, the contrast between VBS and Capitec underscores a broader call for ethical leadership in governance and finance. It also raises questions about what the political elite of South Africa preaches, but what is practised is a complete contrast.As global attention again turns to South Africa, the message resounding across platforms is clear: Integrity matters. Ethics matter. Leadership matters.

VBS scandal rekindled: CEO's post exposes ANC, EFF betrayal while Capitec shines as ethical banking model

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