Lawyer slams ex-VBS boss Tshifhiwa Matodzi over graft allegations

Joseph Maluleke, a lawyer for VBS Mutual Bank fraud-accused Limpopo ANC politicians, has defended himself against allegations that he deems false and defamatory from former bank boss Tshifhiwa Matodzi, now a state witness.

Maluleke issued a media statement via a public relations company on Tuesday. He said that attempts to unjustly associate him with criminal activities that Matodzi orchestrated as the main figure behind the bank’s collapse were a smear campaign to tarnish his reputation and discredit his professional integrity.


Maluleke stated that his primary role in the case was that of an attorney. He was representing former Limpopo ANC treasurer Danny Msiza and former Youth League leader Kabelo Matsepe. Maluleke added that his representation of these clients had made him a target for false accusations. These are aimed at creating a conflict of interest and forcing his removal from the case.

Protection of legal practitioners

Maluleke, however, emphasised the significance of protecting legal practitioners in a constitutional democracy. He stated that he remained committed to representing his clients without fear or prejudice.

“Patently, this is an attempt to create a conflict of interest that will result in my choreographed removal from the case, which is very regrettable.

“I will continue to represent the pair without fear, favour, or prejudice. For our constitutional democracy to thrive, legal practitioners must be protected. They must feel free… to represent anyone seeking their services without fear, regardless of who they are.”

The statement noted that a misleading impression had been imposed on the public sphere. It is meant to portray him as a central player in the sordid saga. The saga affected, among others, the innocent public and older people in Venda and the country in the collapse of the VBS bank.

“This is so in circumstances where not a cent was received by or can be attributed to Mr Maluleke in relation to the VBS saga.

Smear campaign to implicate him

“This glaring fact was conveniently ignored by the journalists. They… went to great lengths to make Joseph Maluleke, who himself is a victim of Matodzi’s shenanigans, the face for this painful and sad VBS debacle. The debacle in which so …many people have lost real money and were thereby impoverished by Matodzi’s self-confessed criminal actions.”

Of significance and central to the VBS saga was that Maluleke and his business partners were serious casualties of Matodzi’s unscrupulous business conduct. This according to the statement. 

“As a result, their company Setlafusion (Pty) Ltd lost over R140-million in investment due to the VBS collapse. This element is conveniently overlooked in all reportage that prefers to hail our assailant as some kind of hero.”

Maluleke elaborated on Matodzi’s alleged false claims. These include the erroneous assertion that Maluleke was his attorney.

Fabrications

He explained that his legal involvement was limited to representing Vele Investment (Pty) Ltd. He represented it in a specific court application, where Matodzi was merely a director and deponent. Furthermore, he dismissed allegations of Maluleke misusing a power of attorney to sell assets as mere fabrications.

The statement criticised the media for their biased and inaccurate reporting. It suggested  that journalists ignored credible evidence and documentation. These refuted the allegations against Maluleke.

He argued that these reports serve a broader agenda to damage his reputation. They are orchestrated by unnamed collaborators, including a competitor in the legal profession.

“This targeted attack and onslaught on Mr Maluleke coupled with inaccurate reporting are not only unfair. It lacks honesty and is not based on any credible evidence. Matodzi and his collaborators, knew that they will get away with these wide and spurious allegations. Because Maluleke is not a party to the criminal proceedings. And therefore [he] enjoys no process in law by which I can deal with these allegations in those proceedings.”

The main goal, according to the statement, was to demonise Maluleke. To leave him hanging in the court of public opinion.

“Despite the necessary documentation being available, reports perpetually insist on impugning his character and reputation. Maluleke, consequently, [implores] you not to be deterred by mob vigilantism. That which …often ignores facts and patent evidence in the court of public opinion.”

Maluleke underscored his respect for press freedom, but called for fair and balanced reporting.

Media at heart of smear campaign

He criticised the media for treating Matodzi’s plea agreement as gospel. This while ignoring its weaknesses and the leniency of Matodzi’s sentence compared to his crimes.

He suggests that the media and law enforcement should focus more on Matodzi’s family. He says the family benefited from his criminal activities.

“I am aware of the journalist who has been contracted to project manage this propaganda machinery against me. On behalf of the director of a prominent law firm in Sandton. Who has commissioned this cheap, negative, and desperate PR campaign against me. A process is underway to deal with this decisively.”

The statement closed with Maluleke expressing sympathy for the victims of the VBS collapse. Also reaffirming his dedication to justice and truth.

He mentioned that he had sought legal advice to address the defamatory statements made against him. And he emphasised that he would handle the matter professionally in court. This while refraining from further media engagement on the issue.

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