This comes as part of efforts by the liquidator's office to pay back victims of the infamous 2018 collapse of the bank, which has since been dubbed one of the largest banking scandals in the country's history.

Tshifhiwa Matodzi, the man behind the scandal, was sentenced to 15 years in prison for his role in orchestrating a fraudulent scheme that led to the bank's downfall. Matodzi, who served as chairperson of VBS Mutual Bank, was convicted for his involvement in the theft of over $130 million, a crime that caused nationwide outrage and left countless victims in its wake.

Before its collapse, the bank had attracted investments from 14 municipalities as well as thousands of elderly South Africans who had trusted the institution with their savings. Following the scandal, many were left in financial ruin, as the bank was looted for years before finally being brought down.

Now, thanks to ongoing efforts by the liquidator, the bank has managed to recover significant sums to reimburse those affected. A total of 670 million Rand (around $35 million) is expected to be paid back to verified creditors, including municipalities, trade creditors, and retail depositors who had over 100 000 Rand ( $5.440) in their accounts. Once the payments are finalised, creditors will effectively recover 25.6 percent of their invested money.

"We believe that this is a good outcome, especially considering the severity of the loss. The 13 municipalities that submitted valid claims will receive approximately $21.76 million, which will help to ease the financial burden caused by this scandal," said Louise Brugman, Spokesperson for the liquidator's office,

--ChannelAfrica--