VBS Mutual Bank saga prosecution re-surface

Sekhukhune

The National Prosecuting Authority (NPA) says it is on an ongoing broader prosecution strategy to ensure accountability for all involved in the looting of the VBS Mutual Bank.

The NPA said during the sentencing of former chairperson of VBS Mutual Bank, Tshifiwa Matodzi, who was sentenced by the Pretoria High Court to 15 years imprisonment for multiple counts of racketeering, theft, fraud and money laundering.

All four local municipalities in Sekhukhune, Fetakgomo Tubatse Local Municipality (FTLM), Ephraim Mogale Local Municipality (EPMLM), Makhuduthamaga Local Municipality (MLM) and Elias Motsoaledi Local Municipality (EMLM), have defied the National Treasury instruction and invested with the now liquidated VBS Bank, which a was contravention of the Municipal Finance Management Act (MFMA).

FTLM experienced a substantial loss of public funds after investing R230 million with the mutual bank.

EPMLM irregularly invested R80 millions of public funds which was lost through the investment while MLM made an unlawful R120 million investment, however, the municipality withdrew the funds before the bank collapsed.

EMLM invested R190 Million with the mutual bank and later withdrew the money. The municipality incurred a R48 000 loss in the investment.

Bolsheviks Party of South Africa (BPSA) Leader, Seun Mogotji, said remedial actions should be taken against those who made the illegal investment with the VBS.

Mogotji said he is concerned about the appointment of MEC for Social Development in Limpopo, Florence Radzilani, saying she is untouchable despite being implicated in Adv Terry Motaung’s report.

“She was never asked to step aside by the ruling party and she even made it clear publicly during an interview that she will not subject herself to the integrity commission regarding the VBS scandal. She was instead rewarded with an MEC position and now forms part of Premier Phophi Ramathuba’s cabinet, it is business as usual,” said Mogotji.

Mogotji indicated that they are aware of an affidavit provided by the convicted Matodzi, which was leaked a few days ago entailing further details about Radzilani’s involvement in the VBS saga.  

“We believe the issue must be revised and some drastic action taken against Radzilani and everyone else mentioned in that statement must be held accountable,” he said.

Mogotji said they are waiting for ANC in Limpopo to issue a statement on the latest developments and give a clear direction on the next steps and actions against those who are implicated.

Socialist Agenda of Dispossessed Africans (SADA) President, Aubrey Ngwatle, has described the VBS irregular investment as a very unfortunate event which destroyed the initial good plan of developing rural economy.

“All ANC led municipalities have treated their comrades with kids gloves, most are still serving in various council while others are currently deployed to legislatures. ANC and corruption are inseparable,” he said.