Cape Town – Minister in the Presidency Khumbudzo Ntshavheni has stated that the government aims to imprison those accountable for the collapse of Venda Building Society (VBS) Mutual Bank.
This follows an affidavit from former VBS chairperson Tshifhiwa Matodzi, who has been sentenced to 15 years in prison after pleading guilty to corruption, theft, fraud, money laundering, and racketeering.
Matodzi’s affidavit names EFF leaders Julius Malema and Floyd Shivambu, as well as former National Treasury director-general Dondo Mogajane, as being involved in the scandal.
JUST IN:
Explosive evidence by Tshifhiwa Matodzi in an affidavit he signed directly implicates the EFF’s Floyd Shivambu and Julius Malema in the VBS corruption scandal. This is the first time direct evidence has surfaced about the scandal. pic.twitter.com/blOZzR4ZTA— Ismail Abramjee (@IsmailAbramjee) July 11, 2024
Matodzi said Malema and Shivambu both knew that the funds received from VBS were unlawful because they created Sgameka as a front. He also said there was no legitimate business reason for the payment, with Malema and Sivambu saying they needed the money for their restaurant in Soweto.
“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,” he said.
Speaking on Saturday ahead of a two-day Cabinet lekgotla meeting in Pretoria, Ntshavheni assured that law enforcement is actively pursuing accountability for all parties implicated, noting the severe impact on victims, particularly in Vhembe, who lost their pension and savings funds.
MUST WATCH: Weighing in on the VBS saga, Minister in the Presidency, Khumbudzo Ntshavheni, says: “There must be justice for the justice for the people of Vhembe, that has always been the position of government.” @News24 pic.twitter.com/6b3MsOOFZN
— Amanda Khoza – The Journalist (@MandaKhoza) July 13, 2024
“The lekgotla did not speak about the VBS case, but you know the stance of government that’s why government instituted support mechanisms for the victims of VBS,” Ntshavheni said.
She added: “Remember Mr Matodzi is not the first one to do a confession; there was Philip Truter who did his confession.
“We hope this affidavit will allow law enforcement agencies to move with speed to bring to book everybody who has swindled the money of our people because now you know the scale of the looting… and disregard of laws.”
ActionSA and the Democratic Alliance have demanded further investigations into Malema and Shivambu’s alleged involvement, criticising the slow pace of law enforcement efforts.
Matodzi was arrested in June 2020 along with other VBS officials, and the Hawks have arrested 33 out of 76 suspects implicated in the scandal, with investigations ongoing.
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Compiled by Betha Madhomu
