The Pretoria High Court erred in granting ANC bigwigs Danny Msiza and Kabelo Matsepe a relief for separation of trial involving 13 accused because their request was a “Stalingrad approach”.
This was said by the state. It added that the separation was not in the interest of justice to reward delaying tactics as it creates a wrong precedent. This will only cause more delays and backlogs in the already overburdened court system, it said.
These arguments were revealed by state prosecutor advocate Hein van der Merwe. He is representing the National Prosecuting Authority (NPA). This in the state’s application for leave to appeal the court decision that granted Msiza and Matsepe’s application. They had applied for a separation of trial in the VBS matter.
On Wednesday at the Pretoria High Court, acting judge Peter Mabuse heard oral arguments. These were from Van der Merwe and Msiza and Matsepe’s lawyer, advocate Shaun Abrahams. The latter is a former head of the NPA. Msiza and Matsepe are opposing the NPA’s application for leave to appeal.
Prayer for a separation of trial granted
In August, the Pretoria High Court denied the request for a stay of prosecution relief in the VBS Mutual Bank heist case. The request was made by Msiza and Matsepe. However, it granted their prayer for a separation of trial.
They requested that their cases be separated from those of the other 11 co-accused. Also that their prosecution be temporarily halted. This while the matter is resolved and permission to appeal to the Supreme Court of Appeal is applied for.
“The honourable court erred in not finding that the basis of the application for
the second prayer is centred in the Stalingrad approach employed by the First and Second Respondents with the purpose to evade going on trial in the matter. Furthermore, the Court failed to consider and apply the principles set out in the authorities in determining the fairness of a criminal trial,” said Van der Merwe.
He said the court erred in not properly assessing the consequences and effect that the separation of the trial will have in the matter.
The court overemphasised the right to a fair trial in respect of the accused. This in relation to that of the state and the community on whose behalf it acts, he said.
Case is of significant public importance
“This matter is of significant public importance. Since it relates to the alleged unlawful activities that led to the demise of VBS Mutual Bank. Which continues to be in the public domain.
“The effect of the order is that it interferes with the prosecutorial prerogative. This as to how the accused should be charged and to fulfil our constitutional obligation. And will negatively impact on how the community perceives justice to be done,” said Van der Merwe.
Abrahams said granting separation of trial does not interfere with the prosecutorial prerogative of the applicant. This in the fulfilment of its constitutional obligations.
Msiza and Matsepe, along with 11 other accused, are charged with the R2.3-billion VBS Mutual Bank heist.
Only two people have been found guilty and sentenced in connection with the case to date. They are former VBS Mutual Bank chairperson Tshifhiwa Matodzi and former chief financial officer Phillip Truter.
In July, Matodzi was found guilty on 33 counts of corruption, theft, fraud, money-laundering, and racketeering. This in violation of the Prevention of Organised Crime Act related to the VBS Mutual Bank collapse scandal.
The Pretoria High Court sentenced Matodzi to 15 years in prison on each of these counts.
He accepted a plea deal from the state and pleaded guilty. The sentences will run concurrently for an effective 15-year jail term.
Matodzi was also declared by the court to be unfit to possess a firearm.
Arrests of VBS staff
In June 2020, Matodzi was arrested along with a number of other VBS staff members.
They included Truter and former treasurer Phophi Mukhodobwane. Also former non-executive board members Ernest Nesane and Paul Magula.
The CEO of VBS, Andile Ramavhunga, was also detained.
In the same year, Truter entered into a plea. He agreed to plead guilty on six counts of fraud, corruption, money-laundering, and racketeering.
Truter was sentenced to 10 years in prison. With three years suspended for five years. He was released on parole in 2024.
Matodzi mentioned that Matsepe, a businessman, was also an agent for VBS. He was appointed to source investment deposits. Matodzi said this in his explosive affidavit that he submitted to the state as part of the plea agreement.
