ANC Limpopo Treasurer Danny Msiza was behind a multimillion-rand “commission scheme” which paid out bribes to municipal officials who made payments to VBS Mutual Bank on behalf of municipalities.
This is according to a report on the South African Reserve Bank’s investigation into corruption at the institution, which made damning findings against dozens of high-ranking officials and individuals.
The investigation noted that after The Citizen reported on the Economic Freedom Fighters’ (EFF) allegation against Msiza earlier this year, VBS’s head of treasury Phophi Mukhodobwane testified that Msiza was behind the commission scheme.
According to the report, Mukhodobwane expressed concern for his safety and was reluctant to name Msiza.
In July, Limpopo EFF provincial secretary Jossey Buthane accused Msiza of having collected about R4 million in cash from all the deals he facilitated.
The most central character in the saga, the report says, was former VBS chairperson Tshifhiwa Matodzi, who chaired both VBS and Vele Investments (which was also implicated) during the period covered by the investigation.
“The overwhelming evidence that has been gathered reveals Matodzi to be the kingpin in the fraudulent conduct of VBS’ business. He, his companies, and his associates have been positively identified as the main beneficiaries of the massive fraud,” it said.
Meanwhile, the Democratic Alliance (DA) in Limpopo intends to lay criminal charges against the brother of EFF deputy leader Floyd Shivambu and other officials found to have received gratuitous payments from VBS Mutual Bank.
Brian Shivambu, who apparently received a R16 million payout from the bank, appeared in a long list of recipients of abnormal payouts, which also included the Free State Development Corporation, which received R104 million.
Others mentioned in the report included the ANC’s deputy chairperson in Limpopo, Florence Radizlani.
DA provincial leader Jacques Smalle said the party had already instituted charges against the managers of all 37 municipalities implicated in the VBS saga. He said the party would study the report and institute fresh criminal charges against those implicated in Limpopo, including Shivambu and Msiza.
The EFF had not replied to requests for comment by The Citizen and had not answered phone calls made to it to this end.
The ANC in Limpopo was understood to be studying the report before commenting on its implications.