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The case against seven people accused of looting VBS Mutual Bank has been postponed until January 2021 to allow prosecutors to add more charges and for police to make additional arrests. His appearance in Commercial Crimes Court in Palm Ridge on Thursday follows the sentencing of former VBS CFO Phillip Truter.
Prosecutors say the investigation of seven people accused of looting VBS Mutual Bank is at an advanced stage, but the state has requested more time to add additional charges and make more arrests.
The seven men briefly appeared in the Commercial Crimes Court, sitting in the Palm Ridge Magistrates Court, on Thursday, where the case was postponed until January 26, 2021.
The defendants include the alleged mastermind behind the R2 billion bank robbery, VBS Chairman Tshifhiwa Matodzi, former CEO Andile Ramavhunga and former company treasurer Phophi Mukhodobwane.
They are joined by representatives of the Public Investment Corporation on the company’s board of directors, Paul Magula and Ernest Nesane, former SAPS CFO Avhashoni Ramikosi and former KPMG engagement partner Sipho Malaba.
The seven were loaded in June 2020, along with former VBS CFO Phillip Truter, who entered a agreement with the prosecution and pleaded guilty to racketeering, fraud, corruption and money laundering in court Wednesday. He received an effective prison sentence of seven years in exchange for providing information on his co-defendants.
The eight men originally faced 47 counts of extortion, fraud, corruption, robbery and money laundering, but the NPA will review the allegation and provide it to the seven defendants before their court appearance in January.
“We are almost done. It is not that we are starting now. We are at an advanced stage,” prosecutor Heins van der Merwe told the court.
NPA spokesman Sipho Ngwema said of the postponement: “This is to amend the accusation but also to add an additional defendant in the matter. So we hope that between now and January those things have happened and we can … be able to share the new indictment with the defendants. “
Truter’s testimony is expected to be pivotal in the case against his former colleagues.
The former CFO admitted to defending Terry Motau, author of the forensic report. The great bank robbery with the Werksmans law firm, which “was an essential participant in the manipulation of VBS banking systems, the fraudulent misrepresentations contained in the 2017 annual financial statements and the filing of fraudulent tax returns.”
In his plea deal, Truter admitted to illegally receiving R5 million in bonus and inflating the bank’s assets in his financial statements when he was actually insolvent.
“Many of these schemes are quite closed and only a very close internal group will have knowledge of the shenanigans that occurred: someone like Truter who decides to take responsibility for their actions will always be encouraged to speak to the state, and such honesty is welcome. ”Ngwema said after Truter’s conviction.
“Corruption can be effectively conquered from within. Other stages of the VBS investigation by the Hawks and the NPA are progressing well. “
Much of the funds looted from VBS came from deposits made by municipalities in contravention of the Municipal Financial Management Law. Local government officials were reportedly bribed to make the deposits.
Merafong Municipality Chief Financial Officer Thys Wienekus is the only municipal official to have been charged in connection with these deposits. Merafong invested R50 million with VBS.
According to the Mail and tutor, the hawks are closing in on various ANC politicians based in Limpopo and could make arrests soon.
ANC Limpopo provincial officials Danny Msiza and Florence Radzilani, both implicated in the looting, were allowed Return to their positions on the party’s provincial executive committee in September 2020, as they faced no criminal charges for nearly two years after being linked to the looting. DM
