VBS Mutual Bank customers at long queues outside the bank in Thohoyandou, Limpopo. Picture: Gallo Images / Antonio Muchave
Minister in the Presidency Khumbudzo Ntshavheni says the government wants those responsible for the collapse of Venda Building Society (VBS) Mutual Bank to be jailed.
This follows the leaking of explosive affidavit deposed by former VBS Mutual Bank chairperson, Tshifhiwa Matodzi.
Matodzi pleaded guilty to corruption, theft, fraud, money laundering and racketeering as part of a plea deal with the state.
He was, therefore, convicted and sentenced this week to an effective 15 years in jail.
His affidavit has implicated Economic Freedom Fighters (EFF) leaders, Julius Malema and Floyd Shivambu, as well as former National Treasury director-general Dondo Mogajane in the VBS scandal.
When asked about the latest developments regarding VBS ahead of the two-day Cabinet lekgotla meeting in Pretoria, Ntshavheni stated that the executive would not be discussing the matter.
“The lekgotla did not speak about the VBS case, but you know the stance of government that’s why government instituted support mechanisms for the victims of VBS,” the minister said on Saturday.
She assured the public that law enforcement agencies were diligently working to hold those involved accountable.
“Remember Mr Matodzi is not the first one to do a confession; there was Philip Truter who did his confession.
ALSO READ: NPA and Hawks to probe ex-VBS boss Tshifhiwa Matodzi affidavit leak
“We hope this affidavit will allow law enforcement agencies to move with speed to bring to book everybody who has swindled the money of our people because now you know the scale of the looting… and disregard of laws.”
The minister revealed that the impact of the VBS saga to “ordinary people”, particularly to those who live in the Vhembe district, was yet to be quantified.
Ntshavheni emphasised that justice must be served for the victims who lost their pension, stokvel or burial society money as a result of VBS scandal, which saw nearly R2.3 billion looted.
“Although government had tried to repay them, it was not enough… the impact has just been dire and to make up for that, we need everybody to be prosecuted and to serve their time.”
ActionSA has since called on the authorities to investigate Malema and Floyd Shivambu’s alleged involvement.
“It is clear that the hollow assertions made by EFF president Malema and EFF deputy president 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,” ActionSA Limpopo chairperson, Victor Mothemela said in a statement on Friday.
READ MORE: Former Treasury DG Dondo Mogajane responds to ‘baseless’ allegations of R1m VBS bribe
Mothemela said Matodzi’s affidavit clearly “illustrates the potential shadiness, corruption, and unpatriotic and unethical character of these two EFF leaders”.
The Democratic Alliance (DA) is also demanding answers about the allegations against Shivambu and Malema, accusing the law enforcement agencies of dragging their feet.
Matodzi was arrested alongside several other VBS officials in June 2020, among them former VBS chief financial officer (CFO) Phillip Truter.
Truter received a 10-year prison term in 2020 after admitting guilt to charges of fraud, corruption, money laundering, and racketeering.
Last month, the Hawks revealed that just over 2 900 statements have been recorded as investigations continue.
Hawks head, Godfrey Lebeya at the time indicated that 33 people had been arrested in connection to VBS.
The unit is working on the remaining 43 of the 76 suspects implicated in the scandal.
The VBS case will continue in the Gauteng High Court in Pretoria for pre-trial.
NOW READ: How VBS Mutal Bank ‘bankrolled’ the EFF
Download our app and read this and other great stories on the move. Available for Android and iOS.
