COSATU welcomes the sentencing of VBS looter Matodzi
10 July 2024
The Congress of South African Trade Unions (COSATU) welcomes the sentencing of the former VBS Mutual Bank chairperson Tshifhiwa Matodzi, to an effective 15 years in prison for the theft of more than R1.9 billion.
Mr. Matodzi pleaded guilty to 33 charges of theft, fraud, money laundering and racketeering relating to theft of more than R1.9 billion belonging to clients of the mutual bank, most of them elderly. As part of a plea and sentence agreement with the State in the Gauteng High Court in Pretoria, Matodzi admitted to being personally involved in the theft of the billions of Rands between 2017 and 2018, by creating fictitious credit in VBS accounts, which was then transferred to other accounts.
Matodzi admitted he was motivated by greed when he stole because he already lived a comfortable life as a chartered account. He apologised to his victims, saying he wished he could reverse his actions.
This is little comfort for the thousands of pensioners, employees at VBS and defrauded municipalities, the working class and the poor who painstakingly saved every penny in the hopes they could one day reap the rewards of their financial discipline or leave some money for their grandchildren’s education. However, that wasn’t to be as Matodzi and his band of criminals stole their nest eggs. What makes this even more infuriating is that VBS customers were fed the lie that by opening an account at the bank and depositing funds, they effectively owned a small portion of the bank and would enjoy a bigger slice of the profit the more funds they deposited. In reality, the opposite was true.
Matodzi is just one of two charlatans who has been imprisoned after former VBS CFO, Phillip Truter, was sentenced to 10 years in prison in 2020 after pleading guilty to six counts of fraud, corruption, money laundering and racketeering. Several VBS senior employees including CEO Andile Ramavhunga were arrested in June 2020 but are yet to know their fate.
After the collapse of the VBS Mutual Bank and the release of the Great Bank Heist investigation report by Advocate Terry Motau SC in October 2018, COSATU Limpopo took a decision to embark on rolling mass action in defence of the depositors who lost their hard-earned savings. In November 2018, supported by its allies, the African National Congress, South African Communist Party and South African National Civic Organisation, the Federation embarked on demonstrations against seven municipalities that unlawfully invested public monies into VBS.
That was followed by a provincial march to several government offices including the Office of the Premier and Treasury in November to demand swift action against the looters. A year and a half later arrests were ultimately made. COSATU reiterates its call to the National Prosecution Authority to continue being meticulous on this case, leaving no stone unturned to ensure all those responsible for the heist are imprisoned, including the political elites implicated in this case.
Whilst welcoming this long overdue sentencing, it will not bring back the lives of our slain matyrs, comrades Roland Mani and Timson Tshililo Thabang Maupa , who were brutally murdered for blowing the whistle against the VBS heist.
If we are to bring justice to their long-suffering families, then the remaining persons who looted VBS to the point of collapse need to be arrested and tried and their assets attached. Justice must be seen to be done, even if the guilty continue to haunt the corridors of Parliament, the Limpopo Provincial Legislatures and various municipalities.
Issued by Zanele Sabela, National Spokesperson, COSATU, 10 July 2024
