The National Treasury says allegations of a R1m payment made against former director-general Dondo Mogajane in the VBS Mutual Bank looting saga are yet to be tested in court.
Convicted former VBS Mutual Bank board chair Tshifhiwa Matodzi, in his testimony affidavit, claimed he paid Mogajane R1m through the Baphilile Foundation. Dondo has denied the allegations.
“The payment was intended for Dondo to intervene and to facilitate the withdrawal of the National Treasury letter and to grant VBS Mutual Bank a special dispensation of 18 months for it to continue to accept municipal investments. At the time VBS Mutual Bank had already started the process to convert into a commercial bank and in VBS Mutual Bank's view the envisaged 18 months would have been sufficient for the process to be expedited,” Matodzi said in his affidavit.
Reacting, the Treasury said: “In the past few days there have been media reports regarding the sworn statement of Matodzi, wherein he makes allegations of impropriety against Mogajane, a former director-general of the department. We note the veracity of the allegations against Mogajane have not yet been proven nor tested in court.”
Treasury, however, welcomed Matodzi's conviction.
“National Treasury and South African Reserve Bank officials worked closely with investigators from the Directorate for Priority Crime Investigation and the National Prosecuting Authority to secure this conviction. This is proof of how seriously the government is working to tackle organised crime and money laundering.
“The steps the Treasury took since 2016 to end unlawful investments made by municipalities into VBS Mutual Bank should speak for themselves. The commitment by the Treasury to hold to account those who committed corruption at VBS Mutual Bank as well as those who profited from these illegal actions continues.
“Our officials will continue to provide evidence, submit affidavits and serve as witnesses in the prosecutions of perpetrators implicated in the heist at VBS Mutual Bank.”
Last Wednesday, Matodzi was sentenced to 495 years in jail for theft, fraud, money laundering and racketeering which led to the collapse of VBS Mutual Bank. He pleaded guilty to 33 charges and was handed a 15-year sentence on each count. The sentences will run concurrently and he will effectively serve 15 years.
TimesLIVE previously reported Mogajane also defended himself, saying he was one of the people who stopped Matodzi contributing to the collapse of VBS Mutual Bank.
“I am proud to have been part of the team that stopped Matodzi and VBS Mutual Bank’s corrupt and pilfering activities.”
TimesLIVE
'Allegations have not been proven': Treasury on VBS Mutual Bank allegations against Dondo Mogajane
Journalist
Image: Thapelo Morebudi/The Sunday Times
The National Treasury says allegations of a R1m payment made against former director-general Dondo Mogajane in the VBS Mutual Bank looting saga are yet to be tested in court.
Convicted former VBS Mutual Bank board chair Tshifhiwa Matodzi, in his testimony affidavit, claimed he paid Mogajane R1m through the Baphilile Foundation. Dondo has denied the allegations.
“The payment was intended for Dondo to intervene and to facilitate the withdrawal of the National Treasury letter and to grant VBS Mutual Bank a special dispensation of 18 months for it to continue to accept municipal investments. At the time VBS Mutual Bank had already started the process to convert into a commercial bank and in VBS Mutual Bank's view the envisaged 18 months would have been sufficient for the process to be expedited,” Matodzi said in his affidavit.
Reacting, the Treasury said: “In the past few days there have been media reports regarding the sworn statement of Matodzi, wherein he makes allegations of impropriety against Mogajane, a former director-general of the department. We note the veracity of the allegations against Mogajane have not yet been proven nor tested in court.”
Treasury, however, welcomed Matodzi's conviction.
“National Treasury and South African Reserve Bank officials worked closely with investigators from the Directorate for Priority Crime Investigation and the National Prosecuting Authority to secure this conviction. This is proof of how seriously the government is working to tackle organised crime and money laundering.
“The steps the Treasury took since 2016 to end unlawful investments made by municipalities into VBS Mutual Bank should speak for themselves. The commitment by the Treasury to hold to account those who committed corruption at VBS Mutual Bank as well as those who profited from these illegal actions continues.
“Our officials will continue to provide evidence, submit affidavits and serve as witnesses in the prosecutions of perpetrators implicated in the heist at VBS Mutual Bank.”
Last Wednesday, Matodzi was sentenced to 495 years in jail for theft, fraud, money laundering and racketeering which led to the collapse of VBS Mutual Bank. He pleaded guilty to 33 charges and was handed a 15-year sentence on each count. The sentences will run concurrently and he will effectively serve 15 years.
TimesLIVE previously reported Mogajane also defended himself, saying he was one of the people who stopped Matodzi contributing to the collapse of VBS Mutual Bank.
“I am proud to have been part of the team that stopped Matodzi and VBS Mutual Bank’s corrupt and pilfering activities.”
TimesLIVE
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