The National Treasury is insisting that it has played a key role in preventing unlawful investments made by municipalities into VBS Mutual Bank.
The department said it noted the damning allegations of bribery against the former director-general, Mogajane.
Former VBS chairperson, Tshifhiwa Matodzi, claimed in his affidavit that Mogajane was paid a R1 million bribe to stop the National Treasury from insisting that municipalities withdraw their investments from VBS.
Allegations not tested in court
“We note that the veracity of the allegations against Mr Dondo Mogajane have not yet been proven nor tested in any court.
“The concrete steps that the National Treasury took since 2016 to end unlawful investments made by municipalities into VBS Mutual Bank speak for themselves,” reads the statement.
In the statement, the department highlighted that it has played a key role in ousting VBS for its looting scandals.
The department insisted that the then Minister of Finance Nhlanhla Nene, had approved VBS being placed under curatorship, working hand-in-hand with the legal and regulatory authorities, and the South African Reserve Bank (SARB).
The department asserted that the department and SARB have worked closely with the Hawks and National Prosecuting Authorities (NPA) to secure Matodzi’s conviction.
According to the department, the Office of the Accountant-General (OAG) ensured that all municipalities that had invested in VBS should withdraw their investments as this did not align with the Municipal Finance Management Act (MFMA) and these regulations were never replaced.
Opposed urgent court interdict
The treasury also opposed VBS from its attempt to interdict them from instructing municipalities not to invest in mutual banks.
“After VBS Mutual Bank was placed under curatorship, the National Treasury in March 2018 invited affected municipalities to discuss the extent of their investments, clarified the investment framework and highlighted the consequence management framework and for financial misconduct contained in the MFMA.
“Each municipality was requested to complete and submit information on the extent of investments held with the VBS Mutual Bank, including the source of funds for the investment,” reads the statement in part.
According to the statement, national treasury officials will serve as witnesses in the ongoing prosecutions of those involved in the VBS heist. They will provide evidence and submit affidavits.
Former VBS CFO out on parole
Meanwhile, the former VBS chief financial officer, Phillip Truter, has been released on parole.
Truter was the first person to be arrested in relation to the VBS looting scandal in 2020.
The Department of Correctional Services spokesperson, Singabakho Nxumalo, confirmed in a media statement that Truter was due to serve seven years behind bars after he was sentenced to 10 years imprisonment over fraud.
Three years were suspended for five years.
“This meant that his minimum detention period would be three years and six months (6 April 2024). Mr Truter also benefited from the Special Remission of Sentence with just two months in terms of custodial imprisonment and was subsequently placed on parole by the Correctional Supervision and Parole Board on April 12, 2024,” said Nxumalo.
“He is serving the remainder of the sentence under Community Corrections until October 6, 2025,” he added.
Read more:
Ex-Treasury boss Mogajane denies receiving R1m VBS bribe
ANC bigwigs faked ex-VBS chair Matodzi’s arrest, sold his Ferrari
