By Lubabalo Mashiqana, CNBC Africa reporter

The curator of VBS Mutual Bank, SizweNtsalubaGobodo represented by Anoosh Roopla, has lodged an urgent application with the High Court for Vele Investments to be placed into liquidation.

The curator is also requesting that Tshifhiwa Matodzi, former chairman of VBS Mutual Bank, Andile Ramavhunga, former CEO of VBS Mutual Bank,  Philippus Truter, former CFO of VBS Mutual Bank, Phopi  Londolani Mukhodobwane, general head of Treasury and Capital Management and Robert Madzonga, former COO of VBS Mutual Bank estates be sequestrated.

VBS Mutual Bank established in 1982, was placed under curatorship in March due to its increasing liquidity challenges emanating from a failure of the board of directors and executive management to manage the mutual bank’s rapid growth and the funding of its liquidity.

Vele, which was one of the bank’s major shareholders allegedly mismanaged VBS funds.

According to a media statement, Rooplal’s “duty in terms of Section 69 of the Banks Act, 94 of 1990, as read with Section 81 of the Mutual Banks Act, 124 of 1993 is to recover all assets for the benefit of the VBS Mutual Bank’s creditors”.

The proceedings were initiated following certain preliminary findings made by Advocate T Motau, who was appointed by the South African Reserve Bank, after Rooplal in April 2018 recommended a forensic investigation be conducted into the affairs of VBS Mutual Bank.

In the statement, the curator said he is “confident that this course of action will place VBS Mutual Bank in the best position to recover the assets due to the bank and to prevent any further dissipation of assets to the prejudice of depositors”.