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VBS paid R1m to former Treasury DG — Matodzi

July 12, 2024
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Disgraced former VBS Mutual Bank chairperson Tshifhiwa Matodzi has alleged that former director-general at National Treasury, Dondo Mogajane, was paid R1m in exchange for his intervention and to not force municipalities to withdraw investments at the bank.

In his bombshell affidavit as part of his guilty plea agreement with the state, Matodzi said in August 2017, the bank received enquiries from municipalities after the National Treasury informed them to withdraw their investments from VBS Mutual Bank ,since the Municipal Finance Management Act prohibits such investments with a mutual bank.

“I discussed this with Raliom [Razwinane, the owner of Gundos Wealth Solutions] who informed me that he had a close relationship with Dondo, and he will arrange a meeting between myself and Dondo. To my recollection, I had at least five meetings with Dondo,” said Matodzi in the affidavit.

He said one of the meetings took place at Cedar Square in Fourways, another at VBS offices in Rivonia, the third at Eagle Canyon and others at Treasury and the SA Reserve Bank.

When contacted for comment on Friday, Mogajane said he would release a statement.

“In all these five meetings it was never just me and Dondo but one or two other people. Present at the Pedro-Portia meeting [in Fourways] was myself, Dondo, Raliom, a gentleman by the name of Chuma and a lady whose name I would later come to know as Dr Mkhize.

“While the discussion was still on this National Treasury letter to the municipalities, Raliom then softly whispered to me regarding our earlier agreement that I should pay an amount of R1m to Dondo. That is when Raliom shared a whisper with Dondo and then Dondo said a million rand is fine, nodding his head,” the affidavit reads..

“In short, the purpose of this meeting was none other than to confirm the payment of R1m and the bank account where it was to be made. I then inquired from where this payment was to be made and that is when Raliom received a piece of paper from Dr khize and in turn handed that piece of paper to me.

“On that paper were the banking details. I then inquired if these were the banking details into which I was to make that R1m payment. That is when Dondo said yes nodding his head. I then left the meeting and the four of them remained.”

Matondzi said the money was paid into a Standard Bank account and was intended for Mogajane.

Meanwhile, the National Prosecuting Authority (NPA) spokesperson Adv Mthunzi Mhaga condemned the leaking of the affidavit, adding the prosecution body was considering legal options. “The NPA leadership has instructed the director of public Pprosecutions, Pretoria, under whose jurisdiction the matter falls, to ensure that, together with the Directorate for Priority Crime Investigation [the Hawks], a thorough investigation into the leak is conducted and that those responsible are held to account,” he said.

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Copyright for syndicated content belongs to the linked Source : SowetanLive – https://www.sowetanlive.co.za/news/south-africa/2024-07-12-vbs-paid-r1m-to-former-treasury-dg-matodzi/

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