Former Treasury director-general Dondo Mogajane. Photo: Supplied
Former Treasury director-general Dondo Mogajane has denied claims by ex-VBS Mutual Bank chairperson Tshifhiwa Matodzi of receiving a R1-million bribe.
The allegation is contained in Matodzi’s explosive affidavit before the Gauteng High Court in Pretoria this week as part of his plea agreement which saw him jailed for an effective 15 years.
Matodzi states in the affidavit that Mogajane received the R1 million to help withdraw a letter from the National Treasury that instructed municipalities to stop depositing funds with the bank.
“To my recollection, I had at least five meetings with Dondo,” Matodzi states in the affidavit.
Mogajane, who currently works for the Moti Group as chief executive, responded to the allegations by saying he was one of the people who stopped Matodzi and “prevented VBS from pilfering South Africa any further”.
He said Matodzi’s allegations are “baseless”.
“I categorically deny that I have ever received corrupt monies or bribes. I proudly served with distinction, honesty, loyalty, and humility as a dedicated public servant for 23 years, the last five of which were as Director-General of National Treasury. My record is clean in terms of how I ran my department and conducted myself as a member of National Treasury.
“I will not be trialled by corrupt individuals or those driving their own agendas, and I will not allow anyone to tarnish my name,” Mogajane said.
ALSO READ: Former VBS boss Matodzi accuses Malema and Shivambu of ‘fleecing millions’ from bank
According to Matodzi, the meetings with Mogajane were to solicit his support to get Treasury to withdraw the circular to the country’s municipalities instructing them to stop depositing funds with VBS, as that contravened the Municipal Finance Management Act (MFMA).
“Whilst the discussion was still on this National Treasury letter to the municipalities, Raliom (Razwinane a VBS agent) then softly whispered to me regarding our earlier agreement that I should pay an amount of R1 million to Dondo,” said Matodzi.
Razwinane then allegedly whispered the bribe arrangement to Mogajane, who nodded his agreement, according to Matodzi.
Matodzi claims he then obtained the banking details in which to deposit the bribe, adding that the money was paid into a Standard Bank account belonging to Baphile Foundation NPC, which belonged to a woman he identified as Dr Mkhize, who was with Mogajane at the meeting.
Mogajane said he did meet with Matodzi “several times” during his tenure. The meetings occurred around October 2017 in Johannesburg.
“Matodzi’s affidavit conveniently excludes the many meetings held in the presence of other people, including with VBS management, the Public Investment Corporation (PIC) as a VBS shareholder, the South African Reserve Bank (SARB), and other National Treasury representatives,” Mogajane said.
“As can be evidenced by minutes of these meetings, we made it very clear that legally, VBS Mutual Bank was not allowed to continue conducting investment deals or receiving deposits from municipalities.
“In fact, my colleagues and I became so alarmed by the actions of VBS Bank that I filed an answering affidavit against it in November 2017, wherein I confirmed National Treasury’s stance against the intentions of VBS in continuing to take municipal deposits. Later, I made another statement with the Hawks in support of their investigation into the bank,” he said.
Mogajane said municipalities cannot make deposits with institutions that are not regulated as per the Banks Act and it was on this basis that he met with Matodzi to discuss regularising VBS as a bank.
“During these engagements, we warned Matodzi and VBS to stop taking deposits until such time as it had been established and regularised as per the Banks Act in accordance with the South African law. During these discussions in 2017 and early 2018, we were not aware that VBS was essentially a scam, and simply viewed these as engagements with a black-owned bank.”
In his affidavit, Matodzi also alleged that Economic Freedom Fighters (EFF) leaders Julius Malema and Floyd Shivambu looted R16.1m from the struggling bank.
In the 263-page witness statement with annexures, apparently signed by Matodzi, he alleged that Malema and Shivambu were paid not to use the EFF’s political muscle against VBS Mutual Bank.
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.
VBS Mutual Bank collapsed in March 2018 following extensive looting of its funds by its own executives and shareholders in an elaborate fraudulent scheme that robbed depositors of more than R2 billion.
ALSO READ: Court sentences former VBS boss Tshifhiwa Matodzi to 495 years
Download our app and read this and other great stories on the move. Available for Android and iOS.
