Malema and Shivambu fingered in VBS looting

Convicted former VBS chairperson, Tshifhiwa Matodzi, has implicated EFF leaders Julius Malema and Floyd Shivambu in the damning looting scandal.

In his tell-all affidavit, the former official details his first meeting with Malema, Shivambu and the party’s secretary general Marshall Dlamini at the EFF’s penthouse in Sandton in 2017.

The meeting culminated in a R16 million gratuitous donation made to the leaders by VBS Mutual Bank.

According to the close to 300-page affidavit, at the core of the meeting was to inform the EFF leaders how their negative commentary about VBS and the Jacob Zuma loan was damaging to the bank’s reputation.

At the time, the controversial bank came under fire after news broke that it granted the former president a R7 million loan for his Nkandla home.

Matodzi says the EFF had started a campaign of mentioning VBS Mutual Bank in its political rallies, which mainly prompted the visit.

“As chair of VBS Mutual Bank, I decided Malema and the EFF should be approached by VBS Mutual Bank to explain its position and how the loan was granted. Present there was Malema, Floyd Shivambu and Marshall Dlamini. Dlamini did not participate.”

“I further informed them that VBS Mutual Bank can donate R5m immediately and R1m per month to the EFF. I also made it clear the amount could only be deposited into a BS Mutual Bank account and the EFF should therefore open a bank account with VBS Mutual Bank.”

Earlier this week Matodzi was sentenced to 15 years in prison for his role in the collapse of the bank after he pleaded guilty to 33 counts including corruption, theft and money laundering, amongst others.

The mutual bank lost around R2.2 billion through unlawful activities, under Matodzi’s leadership.

Scores of elderly people lost all their years of investment with the bank that catered mostly for civil servants, rural cooperatives, stokvels and small business owners.

The bank was placed under curatorship after being declared insolvent and bankrupt in 2018.

ActionSA in Limpopo has called on police to swiftly investigate the two EFF leaders.

The party’s provincial chairperson, Victor Mothemela, says the latest revelations by the former VBS chairperson illustrate the unethical character of Malema and Shivambu.

“It is clear that the hollow assertions made by Malema and Shivambu, claiming they were not involved in the theft of municipal and pensioner funds stored at VBS, are effectively refuted by Matodzi’s sworn confession.”

Mothemela says the issue of corrupt senior politicians who frequently evade punishment for crimes committed against the most vulnerable in our society is concerning.

The EFF has been mum on the latest developments in the matter, with Malema leaving a feisty post on his X.

“For any inquiries, please refer to the archives for answers.”

For any inquiries, please refer to the archives for answers. pic.twitter.com/oCak9cN7Iu

— Julius Sello Malema (@Julius_S_Malema) July 12, 2024

 

The Former DG of the National Treasury, Dondo Magajane, is cited as having pocketted a R1 million bribe in the looting spree that collapsed the bank in which elderly Limpopo people were among its investors.

However, in a video clip that’s circulating on social media, the former Treasury DG says he was actually the one who stopped VBS on its tracks and closed the tap on the looters.

While admitting having met Matodzi, he warned that he will not allow anyone to tarnish his name.

According to the NPA, the affidavit was leaked and a probe into the matter is under way.

The National Prosecuting Authority (NPA) strongly condemns the unlawful leaking of an affidavit in the VBS case pic.twitter.com/LXl6HZuNrg

— NPASouthAfrica (@NPA_Prosecutes) July 12, 2024

This as pre-trial proceedings in the case are expected to get underway later this month (22 July).