The Pretoria High Court has denied the request for a stay of prosecution relief in the VBS Mutual Bank heist case made by ANC leaders Danny Msiza and Kabelo Matsepe.
However, the court has granted them the relief to have a separate trial in the VBS matter involving 13 accused.
Acting Judge Peter Mabuse, who delivered the verdict on Friday, stated he would provide his complete justification for the decision at a later time.
Mabuse adjourned the case until September 9, 2024, so that the parties involved could confer and coordinate the trial’s course of action.
NPA mulls appealing the judgment
Nthunzi Mhaga, a spokesman for the National Prosecuting Authority (NPA), expressed disappointment with the decision to grant the separation of trial relief.
Mhaga declared that the judgment awarding separation of trials would be appealed by the NPA.
“Having two trials is going to overstretch our resources,” said Mhaga.
“It means we will have two trials with two judges; each trial must have its own court personnel; and witnesses will have to testify twice. We will appeal the judgment.
“We will wait for the judge to give us the reasons for the judgment, and then we will take our action.”
Msiza and Matsepe, who have been charged alongside the other 11 accused in the R2.3-billion VBS Mutual Bank heist, requested that their cases be separated from those of the other 11 co-accused and that their prosecution be temporarily halted while the matter is resolved and permission to appeal to the Supreme Court of Appeal is applied for.
Advocate Shaun Abrahams, a former head of the NPA, is representing Msiza and Matsepe in the case.
The only people found guilty and sentenced in connection with the VBS heist to date are former VBS Mutual Bank chairperson Tshifhiwa Matodzi and former VBS chief financial officer Phillip Truter.
In July of this year, Matodzi was found guilty on 33 counts of corruption, theft, fraud, money-laundering, and racketeering in violation of the Prevention of Organised Crime Act related to the VBS Mutual Bank collapse scandal.
15-year jail term
The Pretoria High Court sentenced Matodzi to 15 years in prison on each of these counts.
Matodzi accepted a plea deal from the state and pleaded guilty. The sentences will run concurrently for an effective 15-year jail term.
The court also declared Matodzi unfit to possess a firearm.
In June 2020, Matodzi was arrested along with a number of other VBS staff members, including Truter, former treasurer Phophi Mukhodobwane, and former non-executive board members Ernest Nesane and Paul Magula.
The CEO of VBS, Andile Ramavhunga, was also detained.
In 2020, Truter entered a guilty plea to six counts of fraud, corruption, money-laundering, and racketeering related to bank looting.
As a result, he was sentenced to 10 years in prison, with three years suspended for five years. He was the first person to be arrested in relation to the VBS looting scandal.
Truter was released on parole in July.
Matodzi mentioned that Matsepe, a businessman, was also an agent for VBS, appointed to source investment deposits, in his affidavit that he submitted to the state as part of the plea agreement.
He claims that following their meeting with Matsepe, he later met Danny Msiza at Polokwane’s Fusion Boutique Hotel.
Strong political ties
“To my knowledge, Danny was Matsepe’s business partner. Matsepe was very interested in being appointed as a commission agent for VBS.
“I had indicated that VBS would pay a commission in the region of 2% for any investment that could be sourced by him from the municipalities.”
He added that he was aware of Matsepe and Msiza’s strong political ties and their potential to use them to persuade municipalities, particularly in the province of Limpopo, to invest.
Matodzi said Matsepe was involved in irregular activities as he would regularly discuss strategies and proposals to generate more municipal investments.
Matodzi said Msiza did not have a direct relationship with VBS. His involvement with VBS came through his association with Matsepe and Moshate.
