Media Statement
Public Interest SA commends the National Prosecuting Authority (NPA) and the Directorate for Priority Crime Investigation (Hawks) for their successful prosecution and conviction of former VBS Mutual Bank chairperson, Tshifhiwa Matodzi. This landmark ruling sends a clear message that no individual, including high-profile political figures and tenderpreneurs implicated in the VBS corruption scandal, is above the law.
Tshifhiwa Matodzi faced a multitude of charges including corruption, theft, fraud, money laundering, and racketeering, all of which played a significant role in the collapse of VBS Mutual Bank. His criminal activities resulted in the looting of R2 billion, causing immense harm to the financial institution and its, mainly poor, depositors.
The imposition of a 15-year prison sentence on Matodzi, the orchestrator behind the devastating downfall of VBS Mutual Bank, marks a pivotal moment in South Africa’s fight against corruption. It is a crucial step towards justice for the victims, particularly the poorest members of our society, who suffered the most due to the greed and extravagant lifestyles pursued by those in power.
Matodzi's allegations, detailed in a leaked affidavit, accuse former National Treasury director-general Dondo Mogajane of accepting a R1-million bribe to facilitate the withdrawal of a National Treasury letter instructing municipalities to cease depositing funds with the bank. These claims are deeply troubling and warrant a comprehensive investigation by the Hawks.
What makes these claims even more concerning is that, in 2018, the Public Protector found Mogajane to have "blatantly and dishonestly made false representations of material facts (non-disclosure of his criminal conviction) when applying for the post of DG at National Treasury." The integrity of state institutions is being compromised if the apparent impunity persists.
Public Interest SA calls on the criminal justice system to continue its diligent efforts in bringing to justice all individuals implicated in this egregious wrongdoing. It is imperative that the legal process acts swiftly and decisively against all parties responsible for undermining the integrity of our financial institutions and betraying the trust of the South African public.
While we applaud the excellent work by the NPA and the Hawks, Public Interest SA also wishes to extend special commendation to journalist Pauli van Wyk. Her relentless investigative reporting was instrumental in exposing the heinous crimes committed by individuals entrusted with fiduciary and public power. Van Wyk's dedication to uncovering the truth played a crucial role in bringing these injustices to light and ensuring accountability. Her unwavering efforts were recognised with the prestigious Investigative Journalist Award at the 2023 Whistleblowers Awards.
This conviction reaffirms the commitment of the NPA and Hawks to uphold the rule of law and protect the interests of the citizens of South Africa. Public Interest SA will continue to support and advocate for transparency, accountability, and justice in all sectors of society.
For media inquiries, please contact:
Public Interest SA
Bagaetsho Oteng
010 005 5884
End of Statement