IMG 20240711 WA0029
Picture Courtesy: (News24) Former chairperson of The Venda Building Society (VBS) Mutual Bank, Tshifhiwa Matodzi, was sentenced to an effective 15 years in prison.
(The Post News)- The former chairperson of The Venda Building Society (VBS) Mutual Bank, Tshifhiwa Matodzi, was sentenced to an effective 15 years in prison after a plea agreement with the state on July, 10.
The sentencing took place at the Gauteng High Court in Pretoria, where Matodzi acknowledged his role as the mastermind behind the scheme that led to the bank’s collapse.
The (VBS) Mutual Bank, once a modest bank that had once prided itself on serving rural depositors helping them secure mortgages and save for family funerals, collapsed under the weight of what was later described as “the great bank heist”.
A scandal involving over R2.3 billion (approximately $130 million) siphoned from the bank’s coffers.
The case against Matodzi painted a picture of a financial titan who orchestrated one of the most brazen heists in South African banking history.
His actions not only led to the collapse of VBS Mutual Bank but also robbed pensioners and cash-strapped municipalities of their deposits.
In 2018, South Africa’s central bank took control of VBS, revealing the full extent of the scandal.
The bank collapsed, leaving taxpayers and depositors in shock.
The investigation into the VBS scandal was a complex web of financial transactions and political manoeuvring.
Advocate Terry Motau and Werksmans Attorneys, in a report compiled for the SA Reserve Bank, detailed how approximately R1.9 billion was gratuitously received from VBS by around 53 “persons of interest” over three years.
Matodzi’s cellphone and email records were crucial in unravelling the scheme, providing evidence of his direct instructions on how to manipulate the banking system and where to send kickbacks.
Matodzi faced 33 counts, including corruption, theft, fraud, money laundering, and racketeering.
His combined sentence amounted to a staggering 495 years, but the court ordered concurrent terms, meaning he’d serve 15 years behind bars.
Matodzi reportedly stated, “I deeply regret the actions that led to the demise of VBS, and the harm it caused to depositors and the broader South African community.”
The guilty plea by Matodzi opens the door to potential revelations about other key players in the scandal.
There is speculation that he may turn State witness, which could implicate others involved in the elaborate scheme.
As the pre-trial hearing of the defunct VBS Mutual Bank is set to commence on July 22, 2024, in the North Gauteng High Court in Pretoria, the nation watches with bated breath.
About the Author
