Last week Thursday, 11 July, South Africa got a peek behind the curtain of the infamous VBS Mutual Bank scandal thanks to a leaked affidavit from none other than Tshifhiwa Matodzi, the former chairperson of VBS. 

Who leaked it? Well, that’s a mystery for another day, but what’s clear is the affidavit has stirred the pot, revealing juicy details that have consequences for many high-profile individuals.

First, let’s set the stage: who is Tshifhiwa Matodzi? Picture him as the ringmaster of the VBS circus. As the chairperson, he was supposed to oversee the bank’s operations. Instead, he led a grand heist that resulted in the collapse of the bank, affecting thousands of South Africans, especially in Limpopo. His role? Orchestrating a scheme that saw over R2 billion disappear, making him a central figure in one of South Africa’s most significant financial scandals.

Now, the VBS scandal itself? VBS Mutual Bank initially shone as a beacon of hope for rural and less affluent communities but eventually turned into a Ponzi scheme. Founded in 1982, it was supposed to be a safe place for people to stash their hard-earned savings. Instead, from around 2015 to 2018, it became a money pit, thanks to Matodzi and his cronies. Municipal officials were roped in to deposit funds into the bank, which were then used to fund lavish lifestyles, luxury purchases, and hefty bribes. By the time the curtain fell in 2018, the bank was bankrupt, leaving thousands of depositors, including many pensioners, high and dry. (In 2021, the Reserve Bank announced that depositors were able to recoup up to R100,000 via Nedbank. Still, people lost millions in total.)

So, what’s in this explosive affidavit? Matodzi doesn’t hold back. He admits he failed in his responsibilities and then some. “I was entrusted to play an important role in overall oversight in my capacity as chairman of VBS. I admit I totally failed in my responsibility in this regard,” he writes, opening with a rare moment of humility. But don’t let that fool you; the rest of the affidavit is a tale of self-serving actions and a desperate attempt to protect his family.

According to Matodzi, his involvement included regularly requesting large loans and overdrafts for his companies and those associated with him. These were approved without proper VBS credit policies, introducing significant risks to the bank. “These practices introduced excessive liquidity and credit risk to VBS,” he said. 

He claims his family members were oblivious to the corruption, even though they were direct beneficiaries. As for his ex-wife, Thabelo Booi, she supposedly enjoyed a spousal allowance of R100,000 a month, blissfully unaware of where the money came from.

Matodzi’s revelations didn’t just stop at his family. He named several high-profile figures, including former health minister and ANC bigwig Zweli Mkhize and Dondo Mogajane, the former treasury director-general, now CEO of the controversial Moti Group. The affidavit claims these individuals and others benefited from the VBS loot, with money allegedly used to buy luxury goods and fund political campaigns.

The involvement extended beyond bank executives to political figures, with over 15 municipalities, mostly from Limpopo, caught up in the web of corruption. These municipalities allegedly deposited more than R1.5 billion in the bank, which was effectively operated as a Ponzi scheme. Instead of safeguarding the finances meant for community development, these officials are accused of turning a blind eye to the bank’s fraudulent activities, effectively aiding and abetting the grand heist orchestrated by Matodzi and his cohorts.

Among the political elite named are EFF leaders Julius Malema and Floyd Shivambu, who reportedly received millions to keep the bank’s shady activities under wraps. According to Matodzi, the EFF was paid R5 million upfront and then R1 million monthly to help clean up the bank’s tarnished image. Both Malema and Shivambu have, of course, denied these allegations, with Malema dismissing them as old news and EFF spokesperson Leigh-Ann Mathys accusing the media of harassment.

Matodzi’s guilty plea last week comes after a long, drawn-out saga. He was sentenced to a staggering 495 years in jail for his role in the scandal, but thanks to a plea deal, he’ll serve a mere 15 years. This deal is crucial as it means Matodzi will be the star witness in upcoming prosecutions, potentially bringing down the rest of the syndicate.

Minister in the Presidency Khumbudzo Ntshavheni said she hoped that Matodzi’s cooperation will speed up justice for the victims, especially the everyday people of Vhembe who lost their life savings. “Now you know the scale of the looting, the laundering, the disregard of laws but you have not yet quantified the impact of the VBS saga to the ordinary people,” she said.

This leaked affidavit is more than just a sensational read; it’s a crucial piece of evidence in the ongoing quest for justice. It confirms many suspicions and allegations that have circulated for years, providing concrete details about the involvement of high-profile individuals in the VBS scandal. Matodzi’s cooperation with the authorities is likely to expedite the prosecution of other key figures involved in the corruption.

However, the path to justice has been long and winding. The complexity of the case, combined with the involvement of powerful figures, has slowed down the wheels of justice. As Matodzi himself noted, “corruption that bound all of us together” ensured their illicit activities remained concealed for years.As we move forward, this affidavit could be the key to unlocking the full extent of the VBS scandal and bringing all perpetrators to account. While it’s taken years to reach this point, Matodzi’s revelations might finally provide the closure and justice that VBS’s many victims deserve.