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NPA threatens legal action after ‘explosive’ affidavit implicates Julius Malema and Floyd Shivambu in VBS Bank scandal.
The collapse of the Venda Building Society (VBS) Mutual Bank has been one of South Africa’s most significant financial scandals, implicating high-profile political figures such as Julius Malema and Floyd Shivambu.
The intricate web of corruption, money laundering, and theft has been laid bare through various investigations and court proceedings, with former VBS chairperson Tshifhiwa Matodzi coming forward with damning evidence, implicating the Economic Freedom Fighters (EFF) leaders in the looting of millions from the bank.
Tshifhiwa Matodzi, the former chairman of VBS, has been at the centre of the scandal.
Recently, he pleaded guilty to 33 counts of corruption, theft, fraud, money laundering, and racketeering, resulting in a 495-year prison sentence, which was later reduced to 15 years as part of a plea deal.
In his 263-page witness statement, signed on July 10, 2024, as part of his plea agreement.
Matodzi detailed how Malema and Shivambu were allegedly involved in the scheme outlining a series of meetings and financial transactions that allegedly tied the Eff leaders.
In early 2017, a meeting was arranged between Matodzi and the EFF leaders at the party’s penthouse in Sandton.
During this meeting, Matodzi explained VBS’s position and the negative impact of the EFF’s criticism of the bank’s loan to former President Jacob Zuma for his Nkandla residence.
Matodzi proposed a donation to the EFF to mitigate the damage.
“I then proposed that VBS can donate R5-million immediately once a bank account has been opened at VBS and R1-million per month to the EFF,” Matodzi revealed.
Malema has addressed the VBS Mutual Bank scandal on several occasions.
In his speeches, he has consistently denied any involvement or benefit from the looted funds.
Beyond a brief exchange at a party. Malema said, “I have never benefitted a single cent from VBS”.
Despite his denials, the evidence presented by Matodzi and other sources paints a different picture.
According to Matodzi’s affidavit, Malema and Shivambu siphoned off R16.1 million from the bank, using a front company called Sgameka Projects, which was apparently managed by Floyd’s brother, Brian Shivambu.
In his affidavit, Matodzi detailed how the funds were funnelled through Sgameka Projects to avoid detection.
“To my knowledge, Sgameka is a company owned by Brian Shivambu, a brother to Floyd Shivambu who is the deputy president of EFF. The company was provided to me by Floyd to make payments that I promised to EFF,” Matodzi stated.
He further alleges that the payments were made to prevent the EFF from using its political influence against VBS.
Further investigations revealed that Sgameka Projects paid R4.8 million in VBS loot to Mahuna Investments, a company identified as a front for Julius Malema.
This money was allegedly used to fund Malema’s extravagant lifestyle, including luxury cars and properties.
The Daily Maverick reported that Malema’s spending included “an R1 million Breitling watch, an R2.5 million house in Sandown, and an R1.5 million Mercedes-Benz”.
Despite the detailed allegations and evidence presented, Malema has consistently denied any involvement in the VBS scandal.
He has dismissed the claims as politically motivated attacks aimed at discrediting him and the EFF.
In a recent post on X (formerly Twitter), Malema stated, “For any inquiries, please refer to the archives for answers”.
In a report by Daily Maverick, Floyd Shivambu has also denied any wrongdoing.
In response to the allegations, Shivambu stated, “These fools, they are going to eat their own”, referring to the investigators and journalists uncovering the scandal.
AfriForum, a civil rights organisation, has called for the National Prosecuting Authority (NPA) to prosecute Malema and Shivambu for their alleged involvement in the VBS fraud.
The organisation argues that holding these individuals accountable is crucial for restoring public trust in the country’s institutions.
The revelations by Matodzi have been instrumental in uncovering the truth behind the VBS scandal.
His willingness to cooperate with the authorities and provide detailed accounts of the looting has shed light on the extent of the corruption.
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