Allegations ‘not yet been proven nor tested in any court’ – Treasury defends former DG Mogajane

National Treasury has been drawn into the fallout from the conviction of former Venda Building Society (VBS) Mutual Bank chairperson Tshifhiwa Matodzi.

A leaked affidavit listing several high-profile figures has left one of their own having to distance himself from the situation.

Among those accused by Matodzi of having benefited from allegedly mismanaged VBS funds, was former National Treasury director-general Dondo Mogajane.

Allegations of R1 million bribe

Matodzi’s leaked statement claims Mogajane was the recipient of a R1 million payment for facilitating the withdrawal of a letter that instructed municipalities to stop their association with VBS.

The National Treasury official was quick to deny the claims, describing them as “baseless”.

ALSO READ: Former Treasury DG Dondo Mogajane responds to ‘baseless’ allegations of R1m VBS bribe

National Treasury released a statement on 15 July defending Mogajane and trumpeting its role in bringing Matodzi to book.

“We note that the veracity of the allegations against Mr Dondo Mogajane have not yet been proven nor tested in any court,” the statement read.

“The concrete steps that the National Treasury took since 2016 to end unlawful investments made by municipalities into VBS Mutual Bank should speak for themselves,” it continued.

Steps taken by National Treasury in VBS scandal

VBS Mutual Bank was placed under curatorship in March 2018 under the recommendation of the South African Reserve Bank (SARB).

However, the National Treasury stated that the department had been instituting measures against the bank two years earlier.

As well as informing municipalities that they were in contravention of the Municipal Finance Management Act, the National Treasury opposed court applications seeking to have those communications rescinded.

READ MORE: ‘Everybody who swindled VBS money need to serve their time’, says Ntshavheni

Additionally, once VBS was under curatorship, the National Treasury is said to have engaged with affected municipalities in managing the crisis at multiple levels.

The managers of the nation’s finances reiterated their support for and participation in ensuring justice is served.

“The commitment by the National Treasury to hold to account those that committed corruption at VBS Mutual Bank, as well as those that have profited from these illegal actions, continues today.

“Our officials will continue to provide evidence, submit affidavits and serve as witnesses in the ongoing prosecutions of those perpetrators implicated in the heist at VBS Mutual Bank,” the statement concluded.

GEPF reacts

Meanwhile, which the Government Employees Pension Fund (GEPF) also responded to the allegations against Mogajane.

“The GEPF will not comment at this stage about the contents of the affidavit including reference made to the GEPF chairperson, as the matter is part of a legal process.

“The GEPF chairperson has publicly issued a statement in his personal capacity on the matter,” the entity’s statement reads.