Former VBS boss Matodzi accuses Malema and Shivambu of ‘fleecing millions’ from bank

Former chairman of the Venda Building Society (VBS) Mutual Bank Tshifhiwa Matodzi has alleged that Economic Freedom Fighters (EFF) leaders Julius Malema and Floyd Shivambu looted R16.1m from the struggling bank.

The Gauteng High Court in Pretoria this week sentenced Matodzi to 495 years for his role in the looting of the bank. As part of an agreement, he pleaded guilty to all 33 charges and the sentence was reduced to 15 years.

A leaked 263-page witness statement with annexures, apparently signed by Matodzi on 10 July as part of his plea deal, alleged that Malema and Shivambu were paid not to use the EFF’s political muscle against VBS Mutual Bank.

‘Malema and Shivambu knew’

Malema and Shivambu knew the funds they received from VBS were unlawful, Matodzi claims, because they created a front company called Sgameka Projects.

The Citizen has contacted EFF spokesperson Sinawo Tambo for comment on the allegations. Any update will be included once received.

Taking to social media after the allegations surfaced, Malema wrote: “For any inquiries, please refer to the archives for answers.”

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Matodzi claims there was no legitimate business reason for the payments. Malema and Shivambu allegedly told him they needed money for their restaurant in Soweto, adding that they tried to “regularise” the payments after the curatorship of VBS by backdating a contract that was never entered into.

“To my knowledge, Sgameka is a company owned by Brian Shivambu, a brother to Floyd Shivambu who is the deputy president of EFF. The company was provided to me by Floyd to make payments that I promised to EFF.

“I made this promise following the news which had broken in the media that VBS had granted President [Jacob] Zuma a home loan for his Nkandla residence. Negative publicity arose in the country, particularly from those who were opposed to Zuma at the time. Amongst those was the EFF, Matodzi said in his court papers.

The EFF was among the most vociferous critics of the VBS loan to Zuma.

Tshifhiwa Matodzi Witness S… by Krash King

VBS ‘donations’ to the EFF

Matodzi said, as chairman of VBS, he decided that Malema and EFF should be approached by VBS to explain its position and how the loan was granted.

“Gogoro, which was a VBS PR consultant arranged a meeting with Julius [Malema] at the EFF’s penthouse in Sandton around April/May 2017. I explained VBS’ position and that the EFF’s negative commentary about VBS/Zuma transaction was damaging VBS’ reputation.

“I further informed them that VBS was willing to offer a donation to the EFF. I then proposed that VBS can donate R5 million immediately once a bank account has been opened at VBS and R1 million per month to the EFF. I also made it clear that the amount could only be deposited into a VBS account, and that EFF should therefore open a bank account with VBS,” Matodzi said.

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Matodzi said Malema, Shivambu and Marshall Dlamini were present at the penthouse.

“Dlamini did not participate in the meeting. He was seated far from where the engagement took place.”

‘VBS account registered’

Matodzi said he and Shivambu remained in contact and that the EFF deputy later contacted him to confirm that an account at VBS had been registered “in the name of a company called Sgameka”.

“A transfer of R5 million as promised was made on my instructions to Sgameka on 8 June 2017. Subsequent payments were made to Sgameka VBS account every month and were paid from Vele or any of Vele’s subsidiaries.”

According to Matodzi, Malema and Shivambu knew that the funds they received via Sgameka Projects were not “kosher”, Daily Maverick reported.

“Myself, Julius and Floyd understood that concept of donation to mean gratification. Hence Floyd and Julius did not provide me with EFF’s own banking details for these ‘donations’.”

“There were further subsequent meetings … held between Julius, Floyd and myself”, Matodzi said, “and a notable incident was when Malema and Shivambu informed me that they needed funding to renovate an EFF restaurant called Grand Azania in Soweto.”

VBS curatorship

Matodzi alleged that he gave Malema and Shivambu the name of David Nthlokwe, a general manager at VBS, who would oversee a “loan”.

“This loan application was made through Sgameka and was approved. Although I do not know the amount.”

Matodzi alleged that after VBS was placed under curatorship, he met Floyd and Brian Shivambu “several times” at the EFF deputy president’s home in Bryanston.

“At one of the meetings, myself, Floyd and Brian agreed to regularise the R5 million plus R1 million monthly donations.”

“It was agreed amongst us that we draft a contract between Vele, a (major shareholder in Insure and VBS) and Sgameka for consulting work in petroleum and storage facilities. The contract, which we backdated by agreement, was drafted by the Shivambu brothers,” said Matodzi.

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