Tshifhiwa Matodzi, the former chairperson of the defunct VBS Mutual Bank and the mastermind behind its collapse, has been sentenced to 495 years of direct imprisonment.
The 47-year-old was sentenced on Wednesday at the Palm Ridge Specialised Commercial Crimes Court. Matodzi was at the centre of a scheme that looted R2 billion from pensioners and financially strapped municipalities.
He faced charges including corruption, theft, fraud, money laundering, and racketeering. Matodzi pleaded guilty to 33 charges and entered a plea agreement with the State. He was sentenced to 15 years on each count, but the court ordered sentences for counts two to 33 to run concurrently with count one, resulting in an effective imprisonment term of 15 years. He was also declared unfit to possess a firearm.
Matodzi was charged alongside former VBS CEO Andile Ramavhunga, former treasurer Phophi Mukhobdobwane, KPMG auditor Sipho Malaba, Lieutenant-General Avhashoni Ramikosi, and Ernest Nesane and Paul Magula, who represented the Public Investment Corporation on the VBS board.
Former VBS CFO Phillip Truter, who turned State witness, admitted to participating in the theft and testified against the accused. Truter had previously been sentenced to 10 years in prison, with three years suspended, in 2020.
In 2021, seven men and one woman involved in the three-year looting spree were arrested, including ANC Limpopo leader Danny Msiza, ANC-linked businessman Kabelo Matsepe, pastor and former COO Robert Madzonga, a senior bank manager, and three fixers.
Msiza and Matsepe later approached the North Gauteng High Court seeking more details from the National Prosecuting Authority to prepare their defence, but Judge Peter Mabuse dismissed their application in April.
Mastermind Behind VBS Mutual Bank Collapse Sentenced to 495 Years
Published: 1 year ago
By Sinenhlanhla Masilela
Tshifhiwa Matodzi, the former chairperson of the defunct VBS Mutual Bank and the mastermind behind its collapse, has been sentenced to 495 years of direct imprisonment.
The 47-year-old was sentenced on Wednesday at the Palm Ridge Specialised Commercial Crimes Court. Matodzi was at the centre of a scheme that looted R2 billion from pensioners and financially strapped municipalities.
He faced charges including corruption, theft, fraud, money laundering, and racketeering. Matodzi pleaded guilty to 33 charges and entered a plea agreement with the State. He was sentenced to 15 years on each count, but the court ordered sentences for counts two to 33 to run concurrently with count one, resulting in an effective imprisonment term of 15 years. He was also declared unfit to possess a firearm.
Matodzi was charged alongside former VBS CEO Andile Ramavhunga, former treasurer Phophi Mukhobdobwane, KPMG auditor Sipho Malaba, Lieutenant-General Avhashoni Ramikosi, and Ernest Nesane and Paul Magula, who represented the Public Investment Corporation on the VBS board.
Former VBS CFO Phillip Truter, who turned State witness, admitted to participating in the theft and testified against the accused. Truter had previously been sentenced to 10 years in prison, with three years suspended, in 2020.
In 2021, seven men and one woman involved in the three-year looting spree were arrested, including ANC Limpopo leader Danny Msiza, ANC-linked businessman Kabelo Matsepe, pastor and former COO Robert Madzonga, a senior bank manager, and three fixers.
Msiza and Matsepe later approached the North Gauteng High Court seeking more details from the National Prosecuting Authority to prepare their defence, but Judge Peter Mabuse dismissed their application in April.
