The 15-year jail sentence handed to VBS Mutual Bank looter Tshifiwa Matodzi has brought little pleasure to investors who lost millions of rands when the bank collapsed six years ago.
Aubrey Mulaudzi, who is forced to scramble for a living as a part-time motor mechanic after losing his R2-million investment, says Matodzi’s sentencing is meaningless as it will not bring back his money.
This week the Pretoria High Court sentenced Matodzi to a 15-year jail term on each of the 33 counts of corruption, theft, fraud, money laundering, and a pattern of racketeering activities in contravention of the Prevention of Organised Crime Act in relation to the VBS Mutual Bank collapse scandal.
Matodzi pleaded guilty and entered into a plea bargain with the state. The sentences will run concurrently for an effective 15-year jail term. The court also declared Matodzi unfit to possess a firearm.
“This is so disappointing and irritating. When he goes to jail for 15 years, he is going to a correctional services centre. It is possible that after serving two years of his sentence, he will be released on parole,” said a fuming Mulaudzi.
“He took our money. We have not recovered our money. Fifteen years is nothing. I am angry. We want our money back.
“When he goes to jail, he is going to eat our money again because in jail you get three meals a day. This judgment makes no difference. I am in pain. I am still waiting for my money. I have sent emails to the liquidator and have not received any response or assistance.”
After working hard to save for his retirement, Mulaudzi now survives on the state’s old age pension. He supplements this by working as a part time mechanic. He makes about R2 000 on a good day but this is not on a regular basis.
“Sometimes I do not get any clients and do not make any money on certain days. I am really struggling,” said Mulaudzi.
Similarly, Madambi Muvhulawa, 86, one of the founding directors of the VBS Mutual Bank, said the sentence doesn’t fit the crime.
“The worrying point is that the monies of poor people are not coming back. I am partly satisfied but I expected a harsher sentence. I feel [that]15 years is not correct for the amount of money stolen… The [VBS] liquidator has been collecting monies but there has been no communication with us investors. There is no transparency. I do not know what is happening,” said Muvhulawa.
Robert Livhoyi, 63, who lives in Dzanani, Venda, Limpopo, said the sentence has no material effect on his bid to get his money back. Livhoyi did not want to disclose how much he invested in VBS Mutual Bank.
“The sentencing has no impact and does not mean anything to me. Our money should come back. This [sentencing] is not a solution to us as investors. This sentence hurts us. All people who lost their money should be paid. The liquidator is not communicating anything to us.
“We do not know what is happening. We have sent inquiries to the liquidator but we have not received any replies.” According to Matodzi’s affidavit, former director-general of the National Treasury, Dondo Mogajane, allegedly pocketed a R1-million bribe from VBS.
Mogajane allegedly received the funds to keep municipal investments in VBS in violation of the Municipal Finance Management Act, which states that municipalities cannot invest in mutual banks. This was the first time that an accounting officer at the Treasury w asdragged into allegations of impropriety relating to the VBS Mutual Bank scandal.
In a media statement, Mogajane denied the allegations, saying that he was part of the government team that ensured that VBS Bank was outed for its corruption and looting . This ,he said, they did by filing all relevant documents with the rightful authorities.
The ANC was also in the mud after Matodzi fingered the party’s NEC member, Zweli Mkhize, in his capacity as the then treasurer-general of the Luthuli House-based political formation. Matodzi maintained that Mkhize requested an unquestionable R2-million “donation” for the ANC in exchange for the Public Investment Commission’s influence in facilitating investments into the bank.
Those close to Mkhize said there was nothing unlawful with the donation to the ANC, since he was the party’s treasurer-general at the time. But since the payment did not go directly to the ANC ‘s bank account, it was unclear if the money reached its intended recipient.
The SACP in Gauteng also benefited from the VBS loot by allowing the bank to settle the party’s R3 million bill with the Birchwood Hotel for its 2017 national congress. Matodzi said that following the news that VBS had granted former president Jacob Zuma the Nkandla loan, SACP published a statement alleging that VBS was doing business with Gupta-linked entities called Vardospan and Habib Bank. He then set out to establish contact with the SACP.
Matodzi also alleged that the EFF’s first and second in command, Julius Malema and Floyd Shivambu, were also involved in the collapse of the bank after soliciting kickbacks that amounted to millions of rands.
He explained in his affidavit that these kickbacks went through a company in which Shivambu’s brother Brian was a director under the guise of donations to the EFF.
He should have been ordered to pay back all the monies he stole from the people. How pathetic he is. Stealling from elderly saved monies. ANC is rotten to the core. They charge him to pay for his sins but where is the money. People want money not jail term.