By Ragheema Mclean
The pre-trial hearing for several accused in the VBS Mutual Bank fraud case has been postponed to 14 August, pushing the highly anticipated case back into the spotlight.
This follows allegations that billions were looted from the bank’s coffers, marking a crucial phase in this long-standing legal battle.
The accused include prominent figures such as the bank’s former CEO, Andile Ramavhunga, ex-treasurer Phophi Mukhodobwane, former Limpopo ANC treasurer Danny Msiza, and Kabelo Matsepe.
They are charged with looting nearly R2 billion from the bank, which was placed under liquidation in 2018.
On Monday, 22 July the group appeared in the North Gauteng High Court in Tshwane, where Msiza and Matsepe requested a separation of their trials.
This appearance follows a significant development two weeks prior when the bank’s former chairman, Tshifhiwa Matodzi, struck a plea deal with the National Prosecuting Authority (NPA) and agreed to become a state witness.
Matodzi, identified as the mastermind behind the scheme, pleaded guilty to 33 charges, including theft, fraud, racketeering, and money laundering. He was sentenced to an effective 15 years in prison.
Meanwhile, shortly after his guilty plea, Matodzi’s affidavit, which implicated several high-profile individuals, including EFF leader Julius Malema and deputy president Floyd Shivambu, was leaked.
Speaking on VOC’s PM Drive show, Director of Research at the Auwal Socio-economic Research Institute Angelo Fick, said that during the upcoming August hearings the evidence trail would be aired out in court in terms of who benefitted from the billions what were looted.
“This has been quite a long time coming – we know that at least over the last eight years, VBS has been at the centre of various issues.”
“How and in what capacity members of the EFF have benefited remains unclear because we are waiting for the NPA to charge people implicated in the matter so that there is a paper trail of evidence revealed.”
Fick also highlighted that the VBS scandal will have widespread implications as many people were affected by this.
“We need to remember that ordinary people have, at least since the 1980s, invested their savings in VBS. Many of those people need to be reimbursed and get their savings back.”
“It shouldn’t matter what size the fraud was; fraud is fraud – in principle, all forms of fraud and financial misconduct ought to be pursued. This will also cast a light on previous corruption cases as well and how they were dealt with and investigated.”
As the case progresses, Fick suggests that the new Government of National Unity (GNU) faces challenging questions in parliament and sub-committees, particularly those overseeing justice.
“The conduct of the NPA will be closely examined, and any signs of political favouritism could significantly affect the institution’s credibility at a time when its effective functioning is critical,” he added.
VOC News
Photo: Sourced
