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The Federation of South African Trade Unions (Fedusa) has requested that two former directors of the Public Investment Corporation (CIP) involved in the allegations of VBS Mutual Bank be declared delinquent.
Ernest Nesane, former Chief Legal and Compliance Officer, and Paul Magula, former Executive Director of Risk Management, have been declared offending directors for allegations of irregularities in their duties with the company. board of directors of VBS Mutual Bank.
READ MORE: Prolongation of the PIC after the plunder of VBS
The mutual bank was placed under the curatorship of by the Reserve Bank at the beginning of the year because from a liquidity crisis.
End24 Friday reported that Ernest Nesane resigned from his position as Executive Director for Legal Advice, Governance and Compliance.
Magula was fired by the captain earlier this year following a disciplinary hearing where he was found guilty of the charges against him.
In a statement issued Friday on Nesane's resignation, the commander noted the serious allegations of the directors. the VBS survey.
Fedusa wants both to be declared delinquent administrators for "failing to apply the highest standards of ethics and good corporate governance," the federation said in its statement. a delinquent director is that the director is disqualified from being a director of a corporation under section 69 (8) (a) [of the Company’s Act] in the future ", said Secretary General Fedusa Dennis George.
By law, the court order could be unconditional and could last the life of the director or seven years or more.
"It is important to recognize that Mr. Nesane and Mr. Magula both observe their fiduciary responsibilities for business practices and apply the highest standards of ethics and good corporate governance, "said Fedusa.
federation added that Magula and Nesane can not "escape" a judicial decision, they are no longer both at PIC
. City Press reported Sunday that the pair would have been paid millions by the majority shareholder of the mutual bank, Vele Investments According to City Press they were both paid R5m, to "look on the other side" while the bank was looted.
READ MORE: The struggle for power yields the main shareholder of the VBS bank [19659002] "The latest revelation is an accusation against bad investment choices and control mechanisms internal laxists who could not detect that their representatives at VBS had been "bought" and could no longer trust their fiduciary responsibilities, "said MP Kevin Mileham
The DA wants that the The South African Police Service's investigation into VBS be expanded to include ICP and that the people involved must face criminal charges and repay all the money they've received illegitimately. – Fin24
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