Three VBS execs provisionally sequestrated, Vele liquidated

Orders granted against Tshifiwa Matodzi, Phillip Truter and Phophi Mukhodobwane

Three VBS execs provisionally sequestrated, Vele liquidated

31 July 2018

Provisional sequestration orders have been granted against three businessman in the VBS Mutual Bank fraud saga.

Vele Investments, VBS's main shareholder, has also been liquidated.

The sequestration and liquidation matter, which is ongoing, is being heard in the South Gauteng High Court on Tuesday.

Judge Moroa Tsoka is presiding over the matter.

Provisional sequestration orders have so far been granted against Tshifiwa Matodzi, the former chair of VBS’s board of directors, and also the director and chairperson of Vele Investments; as well as Phillip Truter, the bank's chief financial officer; and Phophi Mukhodobwane, VBS’s general head of treasury and capital management.

An application to try to have the estate of Robert Madzonga, VBS’s previous chief operations officer and the group executive officer of Vele Investments, provisionally sequestrated, may also be heard on Tuesday.

Madzonga appeared relaxed in the court on Tuesday, warmly greeting those around him.

VBS Mutual Bank is at the centre of a massive and ongoing fraud saga.

At least R1.5bn was allegedly looted from it and used by executives who bought, among other items, luxury vehicles.

On March 11 VBS was placed under curatorship, and SizweNtsalubaGobodo Advisory Services (Proprietary) Limited, represented by Anoosh Rooplal, was appointed to deal with this.

On Tuesday Rooplal said the orders were "a great milestone" in the curatorship."

"It's a step in the right direction to potentially recover assets that rightfully belong to VBS depositors," he said.