JOHANNESBURG – The National Prosecuting Authority (NPA) on Friday strongly condemned the leak of jailed former VBS Mutual Bank chairperson Tshifhiwa Matodzi’s explosive affidavit detailing corruption and the looting of more than R2.2 billion from the now defunct bank.
The 70-page affidavit was leaked online on Thursday, just a day after Matodzi (47) was sentenced to an effective 15 years in prison by the Pretoria High Court.
Matodzi pleaded guilty to 33 charges including corruption, theft, fraud, money laundering and racketeering in contravention of the Prevention of Organised Crime Act. The guilty plea was part of a plea agreement with the NPA under Section 105A of the Criminal Procedure Act.
NPA national spokesperson Advocate Mthunzi Mhaga condemned the leak as unlawful, saying it “undermines the administration of justice and puts several people, including members of the investigation and prosecution team, at risk”.
Mhaga said the NPA was considering its legal options and conducting a thorough investigation to bring those responsible for the leak to book.
“The leaking of confidential documents in high-profile and complex corruption cases such as VBS jeopardises the hard work of investigators and prosecutors”.
He stressed the need for the utmost discretion and confidentiality in the handling of such documents and cooperation agreements with accused persons.
Matodzi’s affidavit provides significant insights into the workings of the VBS and poses serious problems for the remaining accused in the case. It also implicates politicians and political parties allegedly involved in the VBS scandal.
Among the explosive allegations are claims that the EFF received monthly “donations” of R5 million and R1 million to improve the bank’s reputation after giving former president Jacob Zuma a home loan for Nkandla. This money was allegedly channelled through a company owned by Brian Shivambu, the brother of the party’s deputy president, Floyd Shivambu.
Matodzi also accuses former National Treasury director-general Dondo Mogajane of accepting a R1 million payment in exchange for not forcing municipalities to withdraw investments from VBS.
He said:
“I categorically deny that I have ever received any corrupt funds or bribes. I have proudly served with distinction, honesty, loyalty and humility as a dedicated public servant for 23 years, the last five as Director-General of the National Treasury. My record is clean in terms of how I ran my department and how I conducted myself as a member of the National Treasury”.
Matodzi goes on to allege that former VBS executives were involved in widespread corruption. He names VBS CFO Philip Truter, CEO Andile Ramavhunga, Solly Maposa and Treasurer Phophi Mukhodobwane as his co-conspirators, all of whom have been charged in connection with corruption at VBS.
Matodzi admits to falsifying financial records, misleading the board and involving family members in corrupt activities.
The NGO Public Interest SA praised the NPA and the Hawks for securing Matodzi’s conviction. It described the 15-year sentence as a defining moment in South Africa’s fight against corruption. The organisation also called for an investigation into the allegations against Mogajane, describing them as ‘deeply disturbing’.
“What makes these allegations even more worrying is that in 2018, the Public Protector found that Mogajane ‘blatantly and dishonestly misrepresented material facts (non-disclosure of his criminal conviction) in his application for the position of DG at National Treasury’. The integrity of state institutions will be compromised if the apparent impunity continues,” the statement said.
Pre-trial hearings in the VBS matter will commence on 22 July 2024 in the Pretoria High Court.
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