Johnathan Paoli
Former VBS Chair Tshifiwa Matodzi has alleged that Economic Freedom Fighters (EFF) president and deputy president, Julius Malema and Floyd Shivambu were promised and received payments from the bank in return for their silence on the scandal that resulted in hundreds of poor people from Limpopo Province mainly, losing their life savings.
In an affidavit released on Thursday night and circulating on social media, Matodzi claimed that Malema and Shivambu met with him at the party’s supposed penthouse in Sandton, Johannesburg which culminated in a transfer of R16.1 million in stolen funds from the bank, allegedly as a donation to the party.
It must be taken into account that there is no record or title deed of the EFF owning a penthouse in the affluent suburb.
Matodzi further alleged that the money was used to acquire a restaurant in Soweto, upgrades to Malema’s Sandton home, a house for Shivambu’s parents and further payments towards the lifestyle of the two EFF leaders.
Earlier this week, Matodzi pleaded guilty to 33 counts of corruption, fraud, theft, money laundering and racketeering and was sentenced to an effective 15 years in prison.
The 263 paged affidavit alleges that both Malema and Shivambu used the party as a bargaining tool, and knowingly created a front company – Sgameka Projects – in order to funnel funds to the party’s restaurant.
Matodzi alleged that the pair tried to “regularise” payments by creating a contract which was never entered into.
Sgameka Projects is currently owned by Shivambu’s brother Brian Shivambu, and Matodzi said he was told to make payments promised to the party to the company.
In addition, the former chair said VBS granted former President Jacob Zuma a home loan for his Nkandla residence, which sparked a public outcry.
EFF was among the most vocal critics of the loan, which Matodzi said motivated his decision to approach the leaders in order to garner their support.
The former chair said he explained to Malema and Shivambu that their party’s political rallies were an embarrassment to the bank and urged them to swing their support in VBS and in Zuma’s favour.
“I further informed them that VBS was willing to offer a donation to the party, and proposed that VBS could donate R5 million immediately once a bank account has been opened, in addition to R1 million per month,” he wrote.
The main bank account of Sgameka Projects is registered with VBS and it is alleged that the account has never received any income other than from various companies linked to the bank.
Matodzi said the transfer of R5 million was made from Malibongwe to Sgameka on 8 June 2017 and the subsequent payments were made every month from the Vele company and its subsidiaries.
“Myself, Julius and Floyd understood that concept of donation to mean gratification hence Floyd and Julius did not provide me with the EFF’s own banking details for these donations,” he wrote.
Matodzi said he passed on the name of a general manager at VBS, called David Nthlokwe to oversee the loan, but confessed he did not know the amount.
The National Prosecuting Authority (NPA) has condemned what it referred to as the unlawful leaking of the affidavit.
NPA spokesperson Mthunzi Mhaga said the leak undermines the administration of justice and places several individuals, including members of the investigation and prosecution team in danger.
“The leaking of confidential documents in high-profile and complex corruption cases like VBS compromises the hard work of investigators and prosecutors,” he said.
Mhaga said the NPA has instructed the Director of Public Prosecutions to ensure a thorough investigation into the leak is conducted and those responsible are brought to book.
The party has not issued a statement or reply to the allegations at the time of publishing.
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