Politicians, beware: Eight kingpins of VBS collapse arrested – amaBhungane

It’s been a long road to find justice, but the investigative team at amaBhungane officially confirmed on Wednesday that eight major role-players in the VBS Bank fiasco have been apprehended, and they’re likely to face a long stretch in jail. Dewald van Rensburg, one of the key reporters involved in the research, also stated that this breakthrough will “drag in a range of political operators”.

AmaBhungane investigation bears fruit

NPA Director Shamila Batohi is set to brief the media at 12:30, with VBS on the agenda.

The VBS Bank was looted by top executives treating themselves to expensive back-handers and illicit payments. Around R3 billion was plundered from the institution, which dramatically collapsed in 2018. However, the bank’s name has lived on in infamy, after a host of politicians were also linked to its demise.

VBS Bank latest – who has been arrested?

Julius Malema and Floyd Shivambu are accused of profiting from the widespread looting. However, both have vehemently denied any involvement with VBS. The pair have clashed with amaBhungane’s representatives before, and most notably, entered a heated war of words with journalist Pauli van Wyk.

The eight arrested figures include:

• Tshifhiwa Matodzi – VBS’ former chair.
• Andile Ramavhunga – bank’s former chief executive.
• Phophi Mukhodobwane – the treasurer for the institution.
• Philip Truter – served as VBS’ chief financial officer.
• Paul Magula and Ernest Nesane – PIC representatives ‘bribed to look the other way’.
• Phalaphala Ramikosi – ex-chief financial officer for SAPS, non-executive VBS board member, audit committee staffer.
• Sipho Malaba – audit partner from KPMG (signed off on the bank’s fake financial statements).
• One unnamed suspect – the eighth arrest cannot be announced as the person is in COVID-19 isolation.

What politicians are linked to the VBS case?

According to the report, all of these role-players could face between 15 to 30 years behind bars. Their charges will include racketeering and the addition of fraud and money laundering remains a distinct possibility. AmaBhungane are confident that this slew of arrests will open the floodgates, and political figures – from local ANC treasurers to party leaders – face an anxious wait to learn their fate.

“These findings [could implicate everyone] from the Venda king Toni Ramabulana Mphephu to the ANC’s treasurer-general in Limpopo, Danny Msiza, who played a key role in getting municipal deposits to VBS. Other ANC figures are also implicated as recipients of ‘gratuitous’ benefits.”

“The leadership of the EFF has also received VBS money through a company belonging the brother of its second-in-command, Floyd Shivambu. Prosecutors will probably find very fertile hunting ground, and this will inevitably drag in a range of political operators from municipalities right up to the national level.”

Dewald van Rensburg

• You can read the full, in-depth report from amaBhungane here.