How world sees SA: Corruption crackdown has begun! At Zuma’s VBS Mutual Bank

South Africa is starting to crack down on corruption. That's the message delivered to The Guardian's global audience as at least seven people, including a KPMG auditor, face charges in connection with corruption and other charges. The Guardian said the VBS Mutual Bank arrests constitute one of the first significant operations against corruption in South Africa since Cyril Ramaphosa gained power more than two years ago. It quoted Shamila Batohi, head of the National Prosecuting Authority, describing the VBS scandal as "probably the biggest bank robbery in this country". This week, investigative journalism unit amaBhungane reports that a second wave of arrests is widely expected, this time targeting some of the municipal officials who deposited billions in VBS Mutual Bank, allegedly often in exchange for bribes. "After that, the road appears headed to political bosses," they report. – Editor.By Nadya Swart.The Guardian recently picked up on the news that several people were arrested in connection with the pillage of VBS Mutual Bank which collapsed with more than £100m in debt in 2018. .___STEADY_PAYWALL___.The arrests are seen as one of the first operations against corruption since President Cyril Ramaphosa came into power in 2018. Seven of the eight primary suspects appeared in the Palm Ridge regional court on 18 June 2020. They include the former chairman of VBS, other senior executives and an auditor from KPMG. .The men were charged with 47 counts of racketeering, corruption, money laundering, fraud and theft and bail was set at R100,000 each. Dozens more, including members of the ruling African National Congress, were implicated in the alleged theft. .The Guardian further reported that, "Ramaphosa has repeatedly promised to crack down on the graft that spread through government institutions, the ANC, parts of the bureaucracy and some law enforcement agencies under the nine-year rule of his predecessor Jacob Zuma." Ramaphosa has reportedly, however, been resistant against action that could threaten "a fragile peace within the ANC.".The Guardian told its readers: "VBS was a little-known lender until it gained notoriety in 2016 for providing a £500,000 loan to the former president Jacob Zuma to reimburse the state for upgrades to his personal home including a swimming pool and amphitheatre." .With the recent plummet in the rand value as a result of the Covid-19 pandemic and the investment downgrading, investors are worried and the country's voters are angered by Ramaphosa's "lack of action against those who have been accused of corruption"..The Guardian said the biggest losers in the collapse were local authorities, though many individual depositors lost their life savings and many were eventually compensated out of public funds.."One ANC MP and former minister has been charged with offering bribes to derail a parliamentary inquiry into corruption at the state power utility Eskom, but continues to sit in parliament and chair the parliamentary committee on home affairs. He denies the charges," the Guardian continued..Underscored on the UK based website is that the arrests are "a further embarrassment for KPMG, which has been heavily criticised for working with the Guptas, a family of businessmen who left South Africa facing fraud and corruption allegations"..The former partner implicated in the VBS scandal resigned from KPMG before an internal disciplinary hearing. He has denied wrongdoing..The Guardian spoke to KPMG, which said it had fully cooperated with the investigations.."Over the last few years KPMG South Africa has reflected deeply on the changes that needed to happen within its business and made significant reforms … KPMG South Africa today is a very different business compared to three years ago. We are confident that we are on the right path, and we will keep working to make sure we play a positive role in the business community and the nation," the spokesperson said..Shamila Batohi, head of the National Prosecuting Authority, is quoted as describing the VBS scandal as "probably the biggest bank robbery in this country". "We have an obligation to all South Africans to deliver justice in this matter. It is our duty to the direct victims of corruption," she said..AmaBhungane, the Centre for Investigative Journalism, said: "Separately from the money that can be seen going to the eight accused in bank statements, they also stand accused of causing a "general deficiency" of R2 296 599 008 which is the total money missing from VBS.".The investigative unit added that at least 42 witnesses have been called to testify against individuals implicated in the VBS bank heist.

How world sees SA: Corruption crackdown has begun! At Zuma’s VBS Mutual Bank

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