Former VBS Mutual Bank chairman Tshifhiwa Matodzi exposes a R16.1m scheme involving Julius Malema and Floyd Shivambu. The funds, extracted from VBS, were funneled through the EFF for personal enrichment, revealing a deeper political and financial scandal.
In a significant revelation, former VBS Mutual Bank chairman Tshifhiwa Matodzi has exposed a R16.1 million scheme implicating prominent EFF leaders Julius Malema and Floyd Shivambu. This disclosure comes after Matodzi’s recent 15-year jail sentence for orchestrating extensive corruption at the now-defunct bank.
The scandal traces back to early 2017, during a meeting at the EFF’s penthouse in Sandton, involving Malema, Shivambu, and Marshall Dlamini. Matodzi detailed how this meeting led to the siphoning of R16.1 million from VBS under the guise of a donation to the EFF. The funds were used for personal gains, including purchasing a restaurant in Soweto, upgrading Malema’s Sandton home, buying a house for Shivambu’s parents, and funding their lavish lifestyles.
Matodzi’s detailed 70-page witness statement, backed by annexures totaling 263 pages, outlines how Malema and Shivambu allegedly leveraged the EFF’s political clout to pressure VBS into providing the funds. The agreement involved creating a front company, Sgameka Projects, managed by Floyd’s brother, Brian Shivambu, to receive these unlawful payments.
The scandal’s roots lie in VBS’s controversial home loan to former president Jacob Zuma for his Nkandla residence, which drew significant criticism, particularly from the EFF. Seeking to mitigate the backlash, Matodzi proposed a deal to Malema and Shivambu, offering them a substantial “donation” in exchange for political support.
Payments were funneled through Sgameka Projects’ VBS account, starting with a R5 million transfer in June 2017, followed by monthly payments. Despite efforts to conceal the illicit nature of these transactions, Matodzi’s testimony reveals Malema and Shivambu’s deep involvement and knowledge of the scheme.
The funds were ostensibly for renovating an EFF restaurant named Grand Azania in Soweto. However, the money primarily served Malema and Shivambu’s personal interests. When VBS faced curatorship in early 2017, efforts to regularize these payments through backdated contracts underscored their intent to hide the financial misconduct.
As Matodzi’s revelations unfold, the scandal casts a shadow over the EFF’s leadership, raising questions about political integrity and accountability. The full implications of this exposé are yet to be seen, with further investigations likely to follow.