Litigation: VBS accused challenges validity of banking law

Limpopo entrepreneur Kabelo Matsepe, one of 10 people accused in the multimillion-rand VBS Mutual Bank scandal, is challenging the validity of the law that precludes municipalities from investing in mutual banks. Matsepe, a business partner of ANC Limpopo treasurer Danny Msiza, lodged court papers in the Gauteng High Court (Pretoria) to have section 6(c) of the Municipal Investment Regulations Act of 2005 declared invalid and set aside. City Press reports that the Act relates to the powers that municipalities must invests in banks. Matsepe owns Moshate Investments Group, which was allegedly paid millions for brokering deals between the bank and the municipalities. The investigation by the VBS curator in 2018 discovered that Matsepe’s company was paid more than R35m and recommended criminal proceedings against him.