Confidential out-of-court settlement between VBS and KPMG was R500m: source

A source familiar with the matter told Daily Maverick that the sum was R500-million. The money will be paid to the liquidator to distribute among the creditors, who will likely feel short-changed. 

News that a confidential settlement had been reached sparked a public outcry, including from trade union umbrella group Cosatu.

More than R2-billion was stolen from the bank in an elaborate fraud heist, and KPMG was hauled to court by the liquidator on the grounds that it had signed off on the fraud. 

Rooplal had initially claimed damages of R864-million plus interest, but was sworn to secrecy following the out-of-court settlement. 

Such settlements are usually labelled “confidential”, effectively gagging both parties until the matter is signed off with a court order. 

Rooplal said in response, "by virtue of the confidentiality agreement signed with KPMG, we have no comment". KPMG said it would respond later today. DM