'Proud to be part of team that stopped Matodzi and VBS': former ...
Convicted fraudster and former chairperson of the now defunct VBS Mutual Bank board Tshifhiwa Matodzi's leaked affidavit has detailed how the bank solicited money from municipalities and bankrolled the lives of government officials.
In the 263-page affidavit, former executive chairperson of Vele Investments Matodzi detailed how the bank used its funds to make gratification payments intended to induce municipal officials to place new investments or roll over existing investment with VBS.
Matodzi implicated former National Treasury director-general Dondo Mogajane, whose involvement in the VBS saga stemmed from pressure the Treasury exerted on municipalities to withdraw investments in the bank.
The two men met five times, with their associates, he said. Matodzi said during a meeting at Pedro-Portia Cigar Lounge in Fourways, Mogajane approved of a R1m payment.
Matodzi said the funds were paid into the Baphilile Foundation under the control of a Dr Mkhize, known to him as Mogajane's associate.
“The payment was intended for Dondo to intervene and facilitate the withdrawal of the Treasury letter and to grant VBS the special dispensation of 18 months for it to continue to accept municipal investments.
“At the time VBS had already started the process to convert into a commercial bank and in VBS' view the envisaged 18 months would have been sufficient for the process to be expedited.”
Matodzi was sentenced on Wednesday to 495 years in jail for theft, fraud, money laundering and racketeering which led to the collapse of the bank. He pleaded guilty to 33 charges and was handed a 15-year sentence on each count, all to run concurrently.
In June 2021, now impeached public protector advocate Busisiwe Mkhwebane found the municipalities that banked with VBS Mutual Bank acted improperly. TimesLIVE reported that 15 local municipalities in Limpopo, the North West and Gauteng deposited about R1.6bn with VBS Mutual Bank, in contravention of the Municipal Finance Management Act and after being instructed not to do so by the Treasury.
After the news broke, Mogajane denied the allegations, saying he was one of the people who stopped Matodzi and prevented VBS from looting South Africa further.
He admitted to having met Matodzi, saying the VBS chairperson sought to have the circular withdrawn.
“Each time I gave him the same answer, refusing to withdraw the circular and refusing his requests to allow VBS to conduct further investment deals with municipalities.
“Matodzi’s affidavit conveniently excludes the many meetings held in the presence of other people, including with VBS management, the Public Investment Corporation as a VBS shareholder, the South African Reserve Bank and other Treasury representatives.”
Mogajane said minutes of meetings were evidence that made it clear that legally VBS Mutual Bank was not allowed to continue conducting investment deals or receiving deposits from municipalities.
“My colleagues and I became so alarmed by the actions of VBS Mutual Bank that I filed an answering affidavit against it in November 2017, wherein I confirmed Treasury’s stance against the intentions of VBS in continuing to take municipal deposits.”
He said he made a statement to the Hawks in support of its investigation into the bank.
“Municipalities cannot make deposits with institutions that are not regulated as per the Banks Act. As a mutual bank, VBS was established under the Mutual Banks Act. As such, any municipal deposits with the bank were illegal, which I reiterated to Matodzi at every meeting.”
He added that in engagements with Matodzi and VBS he warned him to stop taking deposits until it had been established and regularised as per the Banks Act in accordance with South African law.
“During these discussions in 2017 and early 2018, we were not aware that VBS was essentially a scam and viewed these as engagements with a black-owned bank. I deny I have ever received corrupt monies or bribes.
“I proudly served with distinction, honesty, loyalty and humility as a dedicated public servant for 23 years, the last five of which were as director-general of National Treasury. My record is clean in how I ran my department and conducted myself as a member of Treasury.”
Mogajane said he will not be trialled by corrupt individuals or those driving their own agendas, adding he will not allow anyone to tarnish his name.
“The same moral fibre and values I demonstrated throughout my 23 years serving the state and the South African public guide me today. These values are in my DNA. My principles and values continue to govern my business dealings and remain exactly the same.
“Ultimately I am proud to have been part of the team that stopped Matodzi and VBS’ corrupt and pilfering activities.”
TimesLIVE
