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South African Reserve Bank VBS Report

Insure Group Managers Limited (“IGM”) noted the report of Advocate Terry Motau to the South African Reserve Bank relating to VBS Bank and the reference to Mr. Charl Cilliers.

Following a review by the Financial Sector Conduct Authority (“FSCA”) of the regulatory solvency of IGM, the company agreed on 14 September 2018, to a proposal by the FSCA to be placed under voluntary curatorship. Mr Pieter Bezuidenhout was appointed as curator.

The regulatory solvency concerns raised by the FSCA resulted from the investment of funds by IGM into long-term and illiquid investments, which funds are required to service short-term obligations.

As a result of the mandate of the curator to take control of the management of the business of IGM, Mr. Charl Cilliers, the CEO of IGM, was suspended on 14 September 2018.

The curator is currently studying the report to the SARB in order to assess the matter and will, in due course decide on appropriate action to be taken if required.

It needs to be noted that the allegation levied against Mr. Cilliers is in his personal capacity and not related to any business conduct by IGM.

Issued by:
The Office of the Curator
Mr Pieter Bezuidenhout
Insure Group Managers
11 October 2018