The National Prosecuting Authority (NPA) says it is considering taking legal action following the leak of the written affidavit in the VBS case which implicates senior political party leaders among others in corruption.
The affidavit is that of former VBS Chairperson Tshifiwa Matodzi who has been sentenced to an effective 15-years imprisonment.
Matodzi entered into a plea agreement and pleaded guilty to several charges related to the collapse of the bank.
The affidavit was made in terms of the plea deal.
The NPA says the leaking of the document compromises the investigation.
NPA spokesperson Mthunzi Mhaga explains, “This act undermines the administration of justice and places several individuals, including members of the investigation and the prosecution team, in danger and the NPA is considering legal options in this regard. The leaking of confidential documents in high-profile and complex corruption cases like VBS compromises the hard work of investigators and prosecutors. This work involves a multi-pronged and long-term prosecution-guided strategy requiring the utmost discretion and confidentiality including in the handling of documents and cooperational agreements with accused persons.”
The affidavit detailing the corrupt and fraudulent activities that preceded the collapse of the VBS Mutual Bank.
The leaked affidavit outlines how R1,9 billion was looted from the VBS Mutual Bank.
In it, Matodzi implicates several people and organisations for looting funds from the bank. He implicates himself and several other bank employees in irregular activities to loot money from the bank.
The affidavit also details how millions of rand and properties were unduly given to politicians and other influential persons by the bank.
VBS was declared insolvent and bankrupt in 2018. It is currently undergoing a process of liquidation. Thousands of depositors have lost their life savings.
Some of the bank’s depositors, self-employed Sarah Masia and Alidzulwi Mbedzi say that the greatest loss is the service that the bank rendered to them.
“I was able to save the little that I would make daily which would amount to money that was able to do a lot for my family, with the money I was able to pay large sums to ensure that my children are registered at universities. My plea is that the law takes its course and ensures that we get our life savings. I am no longer able to do anything with money from my daily sales, so I want all of the looters to be imprisoned for periods as long as they have lived, maybe then they will learn their lesson,” says Masia.
According to Matodzi’s affidavit, the EFF allegedly received donations to the value of around R16 million.
The donations were allegedly in an initial payment of R5 million, monthly payments of R1 million and funds for the renovations of a restaurant allegedly owned by the EFF.
The party’s spokesperson, Leigh-Ann Mathys strongly slammed allegations linking the party to corruption at VBS and says the allegations are unfounded.
“Look there is absolutely no change to our statement on VBS, there are countless archieves on this matter. So if you want a response go to your archives, but how about you also allocate the same energy and double your energy on Cyril Ramaphosa for money that was hidden in his sofas at his Phalaphala farm this obsession of forcing eff into VBS corruption is just plain down harassment now.”
VBS Bank | ‘We need to know if cases will be opened against those in the affidavit’: Melusi Xulu
The affidavit also implicates senior ANC Limpopo leaders for allegedly unduly benefiting from the loot. ANC spokesperson Jimmy Machaka says they will discuss the matter at their provincial executive meeting.
“We have also noted that various former and current leaders of the ANC are mentioned in the affidavit which was part of the plea bargaining and of course, as an organisation, we are very disappointed because throughout we were made to believe that this matter of VBS has reached finality. As far as it relates to various leaders of the ANC of course the ANC will digest this matter because in any event there is nothing new from that matter we have always known that certain leaders have been mentioned but there has not been any work on the part of law enforcement agency on charging them criminally.”
ANC’s Limpopo Spokesperson Jimmy Machaka says one of the items to be discussed in their provincial executive committee meeting today is the VBS saga.
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One of the bank’s minority shareholders Madambi Muvhulawa has made an impassioned plea for all those implicated to do the honorable thing.
“I plea for all those who are named there, who know they are implicated in this loss of money for our people, must just do the same, they must not waste the court’s time, they must agree that they be sentenced and thereafter look at how our money is going to come back.”
Matodzi has been sentenced to fifteen years in prison after pleading guilty to charges that include fraud and racketeering that relate to the collapse of VBS. He is the second VBS official to be convicted for its collapse.
The first to fall was former bank Chief Financial Officer Phillip Truter who is serving a 10-year jail term.
The pre-trial hearing for VBS CEO Andile Ramavhunga, former Treasure Phophi Mukhodobwane alongside former non-executive members, Ernest Nesane and Paul Magula has been scheduled for July 22nd.
