Tshifhiwa Matodzi, the chairperson of VBS Mutual Bank, has emerged as accused Number one in the state’s case regarding the looting of close to R2bn from the bank, which was regarded as a great heist.
Matodzi, who was chairman of Vele Investment, which is alleged to have been one of the vehicles for the plunder of the bank between 1 March 2015 and 17 June 2018, appeared in the Palm Ridge Magistrate Court on charges of corruption, fraud and money laundering today.
He was arrested in a morning raid yesterday by the Hawks, together with the other seven co-accused on 47 charges ranging from corruption, theft, fraud and money laundering.
The other accused, who also appeared in court, are Andile Ramavhunga, CEO of the bank (accused No 2); Philip Truter, VBS’s chief financial officer (accused No3); Phophi Mukhodobwane, treasurer of the bank (accused No5).
The former audit partner of the bank from KPMG, Sipho Malaba, accused of signing off fake statements, is accused number five, while board member and former chief financial officer of the SA Police Service Phalaphala Ramikosi, is accused Number six.
Public Investment Corporation (PIC) representatives on the VBS board, Ernest Nesane and Paul Magula, are accused number seven and eight respectively.
Truter was in quarantine after contracting COVID-19 and was expected to join the accused after following the protocols of the virus.
The accused applied for bail today, which the state did not oppose.
Yesterday, Hawks head Lieutenant General Godfrey Lebeya said Matodzi and Ramavhunga had hatched a scam that fleeced the bank of R2,2bn as of 11 March 2018.
He said the investigation by the Hawks showed that he and Ramavhunga had signed on false financial statements that made the bank look richer while it was insolvent.
Matodzi, in his bail application, pleaded not guilty and undertook to stand trial.
“I intend to have my day in court in order to prove my innocence. I will stand my trial…if there will be one,” he said in an affidavit.
The investigation into the bank came after a report in October 2018 by Advocate Terry Motau, which laid bare the stealing of money from the bank.
The forensic report, titled “The great bank heist”, concluded that the bank was robbed of R1,9bn.
In terms of the Motau investigation, 53 people and companies received the R1,9bn loot.
The 148-page report places Matodzi at the centre of the alleged heist, and is said to have directly or indirectly, received R326 million.
The seven accused were all granted bail of R100 000 each.
