This follows the infamous $130 million banking scandal that led to national outrage and resulted in the imprisonment of Tshifhiwa Matodzi, the former Chairperson of VBS Mutual Bank.

Matodzi, who was jailed for 15 years, masterminded the scheme that led to the bank's collapse in 2018 after years of looting.

Before the collapse, 14 municipalities and thousands of elderly clients had invested in VBS Mutual Bank. Louise Brugman, Spokesperson for the liquidator's office, provided updates on the recovery process.

"Through the liquidator's collection efforts, a sum of $36 million will be paid back to verified creditors, including municipalities that invested in VBS, trade creditors, and some 458 retail depositors who had over $5400 in the VBS account. They will effectively have recovered 25.6% of their monies once payments have been finalised. We believe that this recovery is a good outcome. The 13 municipalities that submitted a valid claim will be paid approximately $27.2 million," Brugman stated.

--SABC/ChannelAfrica--