Media statement by Dondo Mogajane regarding Tshifhiwa Matodzithe’s allegations and affidavit
12 July 2024
I received an affidavit yesterday made by Tshifhiwa Matodzi, the former chairperson of VBS Mutual Bank and a convicted felon who defrauded South Africans, who made some baseless allegations against me.
To be very clear, in my position as then Director-General of National Treasury, I was one of the people who stopped Matodzi in his tracks, and prevented VBS from pilfering South Africa any further. With this in mind, I would like to set the record straight.
I met with Matodzi several times during my tenure. These meetings followed a circular issued by National Treasury in August 2017 warning municipalities that deposits made at a mutual bank contravened municipal finance regulations, and were not allowed.
Matodzi sought to have the circular withdrawn. But each time, I gave him the same answer, refusing to withdraw the circular, and refusing his requests to allow VBS to conduct any further investment deals with municipalities.
Matodzi’s affidavit conveniently excludes the many meetings held in the presence of other people, including with VBS management, the Public Investment Corporation (PIC) as a VBS shareholder, the South African Reserve Bank (SARB), and other National Treasury representatives.
As can be evidenced by minutes of these meetings, we made it very clear that legally, VBS Mutual Bank was not allowed to continue conducting investment deals or receiving deposits from municipalities. In fact, my colleagues and I became so alarmed by the actions of VBS Bank that I filed an answering affidavit against it in November 2017, wherein I confirmed National Treasury’s stance against the intentions of VBS in continuing to take municipal deposits. Later, I made another statement with the Hawks in support of their investigation into the bank.
In terms of the regulations governing municipalities, the law is very clear. Municipalities cannot make deposits with institutions that are not regulated as per the Banks Act. As a mutual bank, VBS was established under the Mutual Banks Act. As such, any municipal deposits with the bank were illegal, which I reiterated to Matodzi at every meeting.
It was on this basis that we met with Matodzi to discuss regularising VBS as a bank. During these engagements, we warned Matodzi and VBS to stop taking deposits until such time as it had been established and regularised as per the Banks Act in accordance with the South African law.
During these discussions in 2017 and early 2018, we were not aware that VBS was essentially a scam, and simply viewed these as engagements with a black-owned bank.
I categorically deny that I have ever received corrupt monies or bribes. I proudly served with distinction, honesty, loyalty, and humility as a dedicated public servant for 23 years, the last five of which were as Director-General of National Treasury. My record is clean in terms of how I ran my department and conducted myself as a member of National Treasury.
As evidence of the stance that both myself and National Treasury took against Matodzi and VBS, all filed affidavits, statements, minutes of meetings, circulars, and general records dating as far back as 2017, are with the relevant authorities.
I will not be trialed by corrupt individuals or those driving their own agendas, and I will not allow anyone to tarnish my name.
The same moral fibre and values that I demonstrated throughout my 23 years serving the state and the South African public, guide me today. These values are in my DNA. My principles and values continue to govern my business dealings and remain exactly the same.
Ultimately, I am proud to have been part of the team that stopped Matodzi and VBS’ corrupt and pilfering activities.
Issued by Dondo Mogajane, 12 July 2024
