Two former executives of the Public Investment Corporation (PIC), who sat on the board of the VBS Mutual Bank, have been banned by the FSCA.
The Financial Sector Conduct Authority (FSCA) has debarred the executive head for legal counsel, governance and compliance, Ernest Nesane, alongside the executive head of risk and compliance Paul Magula. The two former executives sat on the board of the VBS Bank to safeguard PIC’s interests. This was revealed by the FSCA divisional executive for licensing and the business centre, Felicity Mabaso, during her submission to the PIC Commission of Inquiry on Monday, 18 March 2019.
“We have investigated VBS Bank and the matter is at finalisation stage…and the two people who have been implicated in VBS have already been debarred from the financial sector conduct authority,” she said.
According to the Financial Advisory and Intermediary Services Act, a debarred individual is prohibited from rendering financial services or be a financial service provider. The individual may only return to practise if they comply with the requirements for reappointment of a debarred person.
In his recent appearance before the PIC commission of inquiry, Magula denied all allegations of participating in illegal and fraudulent activities during his tenure as a VBS Mutual Bank board member.
“Some of the things like, fictitious deposits, fraudulent withdrawals, bribes, that are said to have happened at VBS I got to know about when I went before the Prudential Authority’s forensic investigators. I am willing and ready to subject myself and co-operate with the law enforcement agencies,” he said.
His co-accused, Nesane, resigned from PIC in July 2018, shortly after testifying in the forensic investigation into VBS Mutual Bank, amid impropriety allegations.