VBS chairperson Tshifhiwa Matodzi tries to exonerate his family from looting, claims full responsibility

Former chairperson of VBS Mutual Bank Tshifhiwa Matodzi. (Photo: Gallo Images / Sowetan / Mduduzi Ndzingi)

By Neesa Moodley

14 Jul 2024

It is difficult to believe Tshifhiwa Matodzi’s family members were wholly unaware of the fraud, given that they were beneficiaries of the ill-gotten gains. In his witness affidavit Matodzi explains just how they fit into the picture.

At the launch of the Financial Sector Conduct Authority’s regulatory report a few weeks ago, deputy commissioner Katherine Gibson said: “There are relatively few people who will always do the right thing, or will always do the wrong thing. Actually, most of us sit on a spectrum somewhere in the middle, and this is why, particularly in the financial sector, it is so important to set the norms that govern how we behave.”

Her words kept ringing in my ears as I read through the witness affidavit from Tshifhiwa Matodzi, disgraced former chairperson of VBS Bank. As he laid the facts bare, a picture started to emerge of someone who was well aware of his actions, but had not stopped to consider the consequences for others – namely, the thousands who had placed their trust and life savings with the bank he was charged with running.

“I was entrusted to play an important role in overall oversight in my capacity as chairman of VBS. I admit I totally failed in my responsibility in this regard,” he writes at the very beginning.

After laying out how he initially bought shares in VBS, before forming Dyambue, which became a shareholder, Matodzi details the various roles that senior players at VBS played in its demise.

He then takes accountability for his own actions, saying: “After becoming the chairman… I would regularly make requests for loans and/or overdraft increases… for use by my companies or those… associated with me in one way or another.”

In some cases, the loans were approved without following VBS credit policies and invariably this meant that credit was granted to people who would probably not have been granted credit or the same level of credit at another bank. “These practices introduced excessive liquidity and credit risk to VBS,” Matodzi says.

He later explains the involvement of his family members in his machinations. These included his mother, Stephina Matodzi, brother Takalani Matodzi, sister Aluwani Matodzi, and sister Shonisani Difotso. It is glaring how Matodzi points out that the senior management at VBS who colluded with him were well aware of their actions, but then takes pains to note that his family members were unaware of or not part of the corruption at VBS.

His statement, if it is to be believed, even absolves his ex-wife, Thabelo Matodzi. While this paints a picture of someone falling on his sword to protect his family, it is difficult to believe they were wholly unaware of the fraud, given that they were beneficiaries of the ill-gotten gains.

This is how Matodzi’s family members fit into the picture.

Mother, Stephina Matodzi

She had personal and business accounts at VBS, and Tshifhiwa roped in the VBS Thohoyandou bank manager Phillip Tshililo to transfer money to Stephina’s accounts as and when needed. When he first bought shares in VBS, Tshifhiwa also gave his mother money to buy shares in the bank.

According to his affidavit, the money that was transferred to her accounts or that she collected from Tshililo in cash came from either Tshifhiwa's personal or Vele Investments’ accounts in VBS.

She was a director or trustee of three different entities – Africasana, Shimba La Ndou Trust, and Masindi Resort. Masindi is currently deregistered due to non-compliance with annual returns.

Stephina apparently did not have any control over Africasana (which received an overdraft of R4.5-million from VBS) or Shimba La Ndou Trust (which received R14-million from VBS – a R7-million home loan and a R7-million overdraft). Matodzi said he used the Africasana facility to make “various payments mostly for Vele-related issues”, and R1.2-million from this account paid for items for Stephina’s house.

vbs matodzi Former chairperson of VBS Mutual Bank Tshifhiwa Matodzi. (Photo: Gallo Images / Sowetan / Mduduzi Ndzingi)

Brother, Takalani Matodzi

He was a director of Venmont Foods, a Vele subsidiary. Matodzi maintains that Takalani’s sole role was to source land for residential developments and that he was not involved in the daily administration, that is, payments from bank accounts and organising overdrafts or loan facilities. Instead Tshifhiwa says he arranged an overdraft of R15.7-million in Venmont accounts through Vele without Takalani’s knowledge.

The finance was arranged via VBS and Tshifhiwa says he put up his property in Eagle Canyon as additional security for the first land bought by Venmont.

Takalani was also a director of Robvet, but a month later he resigned and Fhatuwani Ravhuhali was appointed director. Robvet was used by Tshifhiwa as a “slush fund” for his personal expenses and to pay agent commissions. He says Robvet was actually controlled by Solly Maposa, who was VBS managing director of retail, and later by VBS treasurer, Phophi Mukhodobwane.

Sister, Aluwani Matodzi

She received car finance and a home loan facility from VBS. Tshifhiwa had employed her as a consultant to Vele with a monthly salary of R30,000. However, when she applied to VBS for the bond, he asked Proforum Accountants to provide a proof-of-income letter showing R107,000 on her behalf. Aluwani also had her own company, Winisource, which had a VBS account. The R107,000 income was apparently based on her R30,000 salary and rental income of R44,000 that Winisource received from client MK Exotics. Tshifhiwa says he did not verify the source of the remaining R33,000 and he accepts responsibility for that.

Read more in Daily Maverick: Ex-VBS chair lifts the lid on how Julius Malema and Floyd Shivambu grabbed R16.1m from dying bank

Read more in Daily Maverick: Corruption Central – VBS chairperson Tshifhiwa Matodzi’s canary song, Part One

Between May 2016, when her car loan was granted, and April 2018, Aluwani paid about R77,000 into the facility from her Winisource VBS account. If you include May 2016, that means she paid roughly R3,200 a month for two years. Tshifhiwa says that following the VBS curatorship Aluwani continued payments of her own accord and the vehicle has since been fully paid for.

Her home loan was approved by VBS in November 2017 and the bond was registered in March 2018. Tshifhiwa says he paid bond costs of R580,000 to the Winisource account. “Aluwani was not aware nor formed part of corrupt activities at VBS,” he wrote.

Sister, Shonisani Difotso

She had no credit or loan facilities with VBS. Tshifhiwa gave her about R360,000 between 2016 and 2018, and he says this was mainly for her personal expenses, debts and child’s university tuition fees.

Ex-wife Thabelo Matodzi

The couple divorced in 2018 – coincidentally (?) the same year that VBS was declared insolvent and placed under curation. In 2017, Tshifhiwa made her CEO of Vele subsidiary Venmont. He says he arranged all the company’s overdrafts and facilities and Thabelo was unaware of corrupt activities at either Vele or VBS. He writes that she received a spousal allowance of R100,000 a month, paid into her FNB account, but it is unclear if this was during the marriage or paid as part of an alimony settlement.

Personal assistant, Takalani Mmbi

In addition to his family, he also attempts to exonerate his personal assistant, Takalani Mmbi, saying she was never involved in nor aware of his activities at VBS or Vele. He asked her to procure shelf companies and would appoint her as director until the companies became operational. She earned a “net” salary of R150,000, and was also paid about R139,000 back in claims during her employment. Although Tshifhiwa says she had a mortgage bond with VBS and he assisted her with bond costs, he does not provide amounts.

The forensic report by advocate Terry Motau paints a somewhat different picture. “When VBS was put into curatorship Mmbi participated in the disposal of assets by Matodzi. She also spirited away documentary records. She was remunerated richly for her efforts,” the report said.

While on the one hand it comes across strongly as a man accepting full responsibility, and trying to exonerate his family members, they must surely have wondered where the money was coming from. DM

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