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Tshifhiwa Matodzi, former chair of VBS Mutual Bank. Picture: MDUDUZI NDZING
Tshifhiwa Matodzi, former chair of VBS Mutual Bank. Picture: MDUDUZI NDZING

Kabelo Matsepe, identified by the mastermind behind the collapse of VBS, Tshifhiwa Matodzi, as one of the key players in the looting of the mutual bank is quickly running out of legal avenues to prevent the SA Revenue Service (Sars) from seizing R61m from him.

This is after the Pretoria high court dismissed his bid to appeal its order that his estate be declared insolvent.

Sars successfully sought an order for the sequestration of Matsepe’s estate on the grounds that it was factually insolvent. This came after the tax agency issued assessments to Motsepe for the periods 2016 to 2018 and November 2015 to March 2018, alleging tax evasion. 

The decision of the Pretoria high court to deny him leave to appeal means Matsepe, a high-profile ANC member in Limpopo, where VBS had its roots, will have to petition the Supreme Court of Appeal if he wishes to have the order of the high court set aside.

Matsepe’s argument was that his company, Moshate, had been selected by VBS as a service provider to offer marketing and capital-raising services in exchange for a commission.

Matsepe, who is facing criminal charges related to the bank looting, argued that since the services were not provided in his personal capacity, Sars cannot hold him responsible. However, the courts have consistently rejected his argument.

In his explosive affidavit, Matodzi flags Matsepe and former Limpopo ANC treasurer Danny Msiza as key figures in the looting of the bank.

Terry Motau’s 148-page report, “VBS Mutual Bank — The Great Bank Heist”, blew the lid off the looting that characterised the bank, from which nearly R2bn was siphoned in less than five years. The report, released in October 2018, also fingered Matsepe as a key figure in the scheme in which several municipalities “invested” money in the bank.

Matodzi, who has admitted to his role in the looting and is expected to begin a 15-year sentence soon, also said money was paid to former National Treasury director-general Dondo Mogajane to turn a blind eye — an allegation he has denied.

Matodzi said R1m was paid to Mogajane to withdraw a circular issued by the National Treasury in 2017 warning municipalities that deposits made at a mutual bank contravened municipal finance regulations and were not allowed.

The National Treasury on Monday sought to poke holes in Matodzi’s allegations, saying its conduct in the VBS matter was always above board.

“We note that the veracity of the allegations against Mr Dondo Mogajane have not yet been proven nor tested in any court. The concrete steps that the National Treasury took since 2016 to end unlawful investments made by municipalities into VBS Mutual Bank should speak for themselves,” the department said.

“The commitment by the National Treasury to hold to account those that committed corruption at VBS Mutual Bank as well as those that have profited from these illegal actions continues today. Our officials will continue to provide evidence, submit affidavits and serve as witnesses in the ongoing prosecutions of those perpetrators implicated in the heist at VBS Mutual Bank.”

khumalok@businesslive.co.za

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