VBS scandal: Details of the accusations facing ANC pair seeking separate prosecutions

The extent of the financial damage allegedly done by the VBS accused is detailed in the National Prosecuting Authority’s (NPA) indictment.

Two key cogs in the grand fraud machine have been noted by VBS Mutual Bank chairperson as being Limpopo ANCYL’s Kabelo Matsepe and Limpopo ANC Treasurer Danny Msiza.

The pair were among the 13 to appear in the Gauteng High Court on Monday, with Matsepe and Msiza making an application to have a separate trial from the rest.

Conduits between bank and municipalities

Matsepe faces at least 25 counts of improperly receiving payments for allegedly soliciting deposits and reinvestments from municipalities, as well as convincing municipalities not to withdraw their funds.

He is alleged to have been a conduit between VBS and municipalities including Polokwane, Makhuduthamaga, Elias Motsoaledi, Vhembe District and Greater Giyani local municipalities.

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As per the NPA indictment, one example relates to Matodzi allegedly paying R1.45 million to Matsepe for him to ensure an R80 million deposit was made by Polokwane local municipality in October 2016.

Payments allegedly made to Matsepe range from R200 000 to R2 million for deposits or reinvestments ranging between R40 million and R200 million.

In January 2018, Mastepe is alleged to have received R2 million for convincing Vhembe District Municipality not to withdraw R300 million from VBS.

Limpopo treasurer accused

Msiza is only facing three counts, one relating to R4.28 million received between July 2016 and January 2018.

The other two counts are for separate payments of R200 000, allegedly for the soliciting of deposits to be made into the bank by municipalities.  

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All charges relate in some way to the contravention of the provisions of the Municipal Finance Management Act, 56 of 2003.

The matter has been postponed to 14 August, with 29 July and 5 August being the deadline for the submission of affidavits and the subsequent replies, respectively.

ANC on the defensive

The guilty plea of Matodzi and subsequent leaking of his sworn affidavit has opened a can of worms for those on the fringes of the accused.

ANC Secretary-General Fikile Mbalula came to the defence of some party members loosely linked to VBS-related meetings.

Answering questions on ANC members’ involvement, he said: “[The party] doesn’t cast aspersions on comrades, they have given us an explanation.”