‘R5m and R1m paid monthly to EFF’: Jailed VBS boss Tshifhiwa Matodzi’s testimony on cleaning Zuma mess

Jailed former VBS Mutual Bank chairperson Tshifhiwa Matodzi claims in his testimony that the EFF was paid R5m and R1m monthly “donations” to clean up the bank’s bad reputation after giving former president Jacob Zuma a home loan for Nkandla.

This was allegedly funnelled through a company owned by Brian Shivambu, brother of the party’s deputy president Floyd Shivambu.

Matodzi was sentenced to an effective 15-years in prison by the Pretoria high court after he pleaded guilty to 33 counts including corruption, theft, fraud, money laundering and racketeering activities in contravention of the Prevention of Organised Crime Act.

In his testimony, he said he met EFF leader Julius Malema and Floyd Shivambu at the party’s Sandton penthouse during the heat of the Nkandla saga as the party had been criticising the bank for giving Zuma the loan.

Matodzi said he promised the party leaders VBS would pay the EFF an initial R5m and thereafter make a R1m monthly donation in an effort for good PR.

“To my knowledge Sgameka is a company owned by Brian Shivambu, brother of Floyd Shivambu, who is deputy president of the EFF. The company was provided to me by Floyd to make payments I promised the EFF.

“I made this promise after news broke in the media that VBS Mutual Bank had granted former president Jacob Zuma a home loan for his Nkandla residence. Negative [publicity] arose in the country,” his witness testimony reads.

“The EFF had started a campaign of mentioning VBS Mutual Bank in its political rallies through its president Julius Malema. As chair of VBS Mutual Bank I decided Malema and the EFF should be approached for VBS Mutual Bank to explain its position and how the loan was granted. Present there [at the meeting in Sandton] was Malema, Floyd Shivambu and [EFF secretary-general] Marshall Dlamini. Dlamini did not participate.

“I explained VBS Mutual Bank’s position and the fact that the EFF’s negative commentary about the VBS Mutual Bank/Zuma transaction was damaging VBS Mutual Bank’s reputation. I further informed them that VBS Mutual Bank can donate R5m immediately and R1m per month to the EFF. I also made it clear the amount could only be deposited into a VBS Mutual Bank account and the EFF should therefore open a bank account with VBS Mutual Bank.”

Matodzi said after the meeting in Sandton, Shivambu provided him with a VBS Mutual Bank account belonging to his brother Brian’s company Sgameka to make the “donations” without a traceable link to the party.

“Floyd indicated they opened an account at VBS Mutual Bank in the name of a company called Sgameka. A R5m transfer as promised was made on my instruction from Malibongwe [Petroleum] to Sgameka on June 8 2017. Subsequent payments were paid from Vele [Investments] or any of Vele’s subsidiaries. Myself, Julius and Floyd understood that concept of donation to mean gratification, hence Floyd and Shivambu did not provide the EFF’s own banking details for the ‘donations’,” the statement reads.

After the bank was placed under curatorship by the government in 2018, Matodzi said he and Shivambu drafted a contract between VBS shareholders and Sgameka to be able to account for the donations made to the EFF.

“I met Floyd and his younger brother Brian several times at Floyd’s residence in Bryanston. At one of the meetings myself, Floyd and Brian agreed to regularise the R5m and R1m monthly donations. It was agreed among us that we draft a contract between Vele and Sgameka for consulting work in petroleum and storage facilities. The signatories were myself representing Vele and Brian, who was representing Sgameka.”

Over the years as the VBS Mutual Bank saga has played out, Malema and Shivambu have maintained their innocence.

Malema said: “There is nothing that implicates us. Why are we not being arrested? Why are we not being charged if these [allegations] are legitimate? Why would a company implicated in a report of corruption and fraud not be charged?” 

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