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GREAT BANK HEIST

Former ANC leaders accused of trying to delay start of VBS trial

High court in Pretoria reserves judgment on separating cases of former ANC officials from ongoing VBS Mutual Bank heist trial, with accusations of delay tactics and demands for justice after corruption and looting that has left victims still waiting for accountability.
Former ANC leaders accused of trying to delay start of VBS trial Former National Prosecuting Authority (NPA) boss Advocate Shaun Abrahams is representing two former ANC leaders accused of corruption relating to the looting of VBS Bank Photo by Leila Dougan

The Gauteng Division of the High Court in Pretoria has reserved judgment on an application to separate the cases of former ANC Limpopo treasurer Danny Msiza and former ANC Youth League leader Kabelo Matsepe from the ongoing VBS Mutual Bank heist trial.

The case against the 13 co-accused has been repeatedly delayed and in July 2023, advocate Shaun Abrahams, the former National Prosecuting Authority (NPA) boss who is representing Msiza and Matsepe, filed two applications seeking to have the two tried separately.

DA members protest outside the Gauteng Division of the High Court in Pretoria on Wednesday about the slow delivery of justice in the VBS looting saga. (Photo: Democratic Alliance Media)
DA members protest outside the Gauteng Division of the High Court in Pretoria on Wednesday about the slow delivery of justice in the VBS looting saga. (Photo: Democratic Alliance Media)

On Wednesday, Abrahams argued: “My clients’ applications are premised first, on the interest of justice and second, a vindication of their rights contemplated by section 35 of the Constitution, simply their right to be informed of the charges and to answer to the same charge and their right to eloquently prepare their respective defences. Third, their right to have their trial begin and conclude in a reasonable time. And lastly, my clients’ right to challenge and produce evidence.” 

The State argued against a separation of trials and suggested instead that the trial begin immediately. Prosecutor Hein van der Merwe said Msiza and Matsepe were following a “strategy specifically formulated to delay and prevent the start of the trial”.

Judge Peter Mabuse said a separation of trials could mean the matter would be postponed for up to five years.

Read more: Ex-Treasury DG Mogajane and the alleged VBS bribe — ties to non-profit directors revealed

Msiza and Matsepe have also applied to force the NPA to hand over documents related to the investigation into VBS conducted by advocate Terry Motau and Werksmans Attorneys.

Former ANC Limpopo treasurer Danny Msiza. (Photo: Twitter)
Former ANC Limpopo treasurer Danny Msiza. (Photo: Twitter)

Van der Merwe said Msiza and Matsepe could have requested the documents as far back as 2021, but had waited until 2023 when the case was finally ready to proceed to trial. He said the only inference was that they intended to delay the trial.

Abrahams insinuated the investigation that led to Msiza and Matsepe being implicated was flawed. He accused the State of causing delays in the case by failing to provide the defence with key documents.

The court also heard on Wednesday that the lawyers representing the other accused in the matter had not filed court papers after they were requested by the court to do so by the end of July.

They argued that a week was not sufficient to file papers and they needed about three weeks. Judge Mabuse said this was disappointing. 

The accused

Msiza is alleged to have been the central figure linking VBS with municipalities that illegally invested funds in violation of the Municipal Finance Management Act. Matsepe was allegedly the bank’s go-between with Msiza.

The 13 accused face 180 charges, including corruption and racketeering, for their roles in the syphoning of R2-billion from VBS Mutual Bank between 2015 and 2018.

The accused include Msiza, Matsepe, VBS CEO Andile Ramavhunga, former treasurer Phophi Mukhodobwane, KPMG auditor Sipho Malaba, Lieutenant-General Avhashoni Ramikosi (a non-executive director), Ernest Nesane and Paul Magula (both representing the Public Investment Corporation on the VBS board), Robert Madzonga, Paul Makhavu, Ralliom Razwinane and Venda King Toni Ramabulana Mphephu.

Mmbulaheni Robert Madzonga (53), Kabelo John Matsepe (29), Mamphe Daniel Msiza (53), Ralliom Razwinane (39), Takunda Edgar Mucheke (37), Tshianeo Madadzhe (37) and Mulumisi Solomon Maposa (49) face charges of fraud, theft, money laundering, corruption and racketeering after allegedly looting nearly R2.3-billion from VBS Bank. (Photo: Gallo Images / OJ Koloti)
Mmbulaheni Robert Madzonga (53), Kabelo John Matsepe (29), Mamphe Daniel Msiza (53), Ralliom Razwinane (39), Takunda Edgar Mucheke (37), Tshianeo Madadzhe (37) and Mulumisi Solomon Maposa (49) face charges of fraud, theft, money laundering, corruption and racketeering after allegedly looting nearly R2.3-billion from VBS Bank. (Photo: Gallo Images/OJ Koloti)

In July, former VBS chairperson Tshifhiwa Matodzi pleaded guilty to 33 charges, including theft, fraud, money laundering and racketeering.

Matodzi admitted to his role in stealing more than R1.9-billion from the bank between 2017 and 2018 by creating fictitious credits in VBS accounts, which were then transferred to other accounts. He was sentenced to 15 years in prison on each of the 33 counts but will serve the terms concurrently.

Read more: Corruption Central – VBS chairperson Tshifhiwa Matodzi’s canary song, Part One

Former VBS CFO Phillip Truter received a 10-year sentence in 2020 after pleading guilty to six counts of fraud, corruption, money laundering and racketeering related to the bank’s looting.

Former VBS Mutual Bank chairperson Tshifhiwa Matodzi. (Photo: Gallo Images)
Former VBS Mutual Bank chairperson Tshifhiwa Matodzi. (Photo: Gallo Images)

To date, only Matodzi and Truter have been convicted and sentenced. Truter was released on parole in July.

Read more: ‘We are really suffering’ — six years on, VBS victims still bear brunt of devastating looting spree

ActionSA and DA supporters attended the court case on Wednesday. As part of their call for justice in the VBS looting scandal, the DA staged a protest outside the court premises ahead of the proceedings.

The DA’s deputy chief whip, Baxolile Nodada, said: “Nearly six years later, while VBS officials face criminal charges, the implicated politicians remain untouched, raising serious concerns about the pace of justice.

“The DA has been relentless in pursuing accountability, having filed charges against 50 individuals and specifically targeting Floyd Shivambu and Julius Malema in 2018. However, the SAPS has yet to complete its investigations. This delay is unacceptable, and the DA has called on the Police Portfolio Committee to ensure these investigations are completed swiftly. Justice delayed is justice denied.”

Judgment on Msiza and Matsepe’s application to have a separate trial will be delivered on Friday. DM

Comments (10)

Les Thorpe Aug 15, 2024, 09:06 AM

Quite amazing how the "legal system" panders to every whim of the perps in S.A. The victims, of course, are only a "peripheral issue" and have few rights in practice. And legal teams queue up for "commissions", offering the perps all manner of "tricks" to circumvent their convictions, as long as the cash (usually stolen or fraudulently acquired) flows into the formers' accounts.

Les Thorpe Aug 15, 2024, 09:06 AM

Quite amazing how the "legal system" panders to every whim of the perps in S.A. The victims, of course, are only a "peripheral issue" and have few rights in practice. And legal teams queue up for "commissions", offering the perps all manner of "tricks" to circumvent their convictions, as long as the cash (usually stolen or fraudulently acquired) flows into the formers' accounts.

nicholasandrewmiles Aug 15, 2024, 10:06 AM

so these are the basic definitions of some crimes. it's intersting to see how many of these the various actions of individuals, and political parties themselves, seem to apply: 1: Defeating or obstructing the course of justice The crime of defeating or obstructing the course of justice consists of unlawfully and intentionally engaging in conduct which defeats or obstructs the course or administration of justice. 2: Extortion It consists of taking from another some patrimonial or non-patrimonial advantage by intentionally and unlawfully subjecting that person to pressure which induces him or her to submit to the taking. 3: Fraud It is the unlawful and intentional making of a misrepresentation which causes actual prejudice or which is potentially prejudicial to another. 4:Malicious injury to property It consists of unlawfully and intentionally damaging the property of another. 5:Perjury Perjury consists in the unlawful and intentional making of a false statement in the course of a judicial proceeding by a person who has taken the oath or made an affirmation before, or who has been admonished by somebody competent to administer or accept the oath, affirmation or admonition. 6: Public violence It consists of the unlawful and intentional commission, together with a number of people, of an act/s which assume serious dimensions and which are intended forcibly to disturb public peace and tranquillity or to invade the rights of others. 7: Receiving stolen property The crime of receiving consists of unlawfully receiving possession of stolen property knowing it to have been stolen. 8: Theft It consists of the unlawful appropriation of moveable corporeal property belonging to another with intent to deprive the owner permanently of the property. 9: Crimen injuria consist of unlawfully and intentionally impairing the dignity or privacy of another person.

nicholasandrewmiles Aug 15, 2024, 10:06 AM

so these are the basic definitions of some crimes. it's intersting to see how many of these the various actions of individuals, and political parties themselves, seem to apply: 1: Defeating or obstructing the course of justice The crime of defeating or obstructing the course of justice consists of unlawfully and intentionally engaging in conduct which defeats or obstructs the course or administration of justice. 2: Extortion It consists of taking from another some patrimonial or non-patrimonial advantage by intentionally and unlawfully subjecting that person to pressure which induces him or her to submit to the taking. 3: Fraud It is the unlawful and intentional making of a misrepresentation which causes actual prejudice or which is potentially prejudicial to another. 4:Malicious injury to property It consists of unlawfully and intentionally damaging the property of another. 5:Perjury Perjury consists in the unlawful and intentional making of a false statement in the course of a judicial proceeding by a person who has taken the oath or made an affirmation before, or who has been admonished by somebody competent to administer or accept the oath, affirmation or admonition. 6: Public violence It consists of the unlawful and intentional commission, together with a number of people, of an act/s which assume serious dimensions and which are intended forcibly to disturb public peace and tranquillity or to invade the rights of others. 7: Receiving stolen property The crime of receiving consists of unlawfully receiving possession of stolen property knowing it to have been stolen. 8: Theft It consists of the unlawful appropriation of moveable corporeal property belonging to another with intent to deprive the owner permanently of the property. 9: Crimen injuria consist of unlawfully and intentionally impairing the dignity or privacy of another person.

William Stucke Aug 15, 2024, 08:53 PM

Tell me, Mr Rugby Fan, what makes you special? We mere mortals are limited to 300 characters in our comments, but you are glorying in 1,864 characters. More than 6 times as much. How come?

broste2002 Aug 15, 2024, 10:17 AM

Jacob Zuma was shown by Kemp J Kemp SC how easily and successfully the Stalingrad defence could be used. Now lots of others have learned and are doing the same, showing the SA justice system to be inept and weak, because the laws and procedures it follows are not fit for purpose.

Bruce Gatland Aug 15, 2024, 10:18 AM

How is Shaun still an advocate?

Bradjame666@gmail.com Aug 15, 2024, 01:17 PM

Ah good old Shaun Abrahams. The corrupt, incompetent circus clown dressed in lawyer's robes, masquerading as an attorney. I thought this idiot has long since skulked off into the night. No surprise to see him slither out to defend his corrupt buddies though. I expect he'll be joining MK soon.

Matthew Quinton Aug 15, 2024, 04:00 PM

There is such an easy solution for the legal system FUBAR which we have. Pay lawyers like estate agents... IE you only get your commission once the deal is done and the property is transferred. If the case has no chance of success, lawyers wont take it and there is no benefit to drawing it out

Johan Buys Aug 15, 2024, 09:18 PM

Advocate Shaun Abrahams aka Shaun the Sheep! Good heavens, almost forgot about him. Legal Fraternity : how is Shaun the Sheep a “fit and proper person”?? When will Shaun the Sheep be an MK member of parliament??

troyelanmarshall67@gmail.com Aug 16, 2024, 09:44 AM

This is when SA's public broadcaster can play a role in educating the masses. Make it clear; suspects cynically wait until the last possible moment before asking the prosecution for documents. The implication is damning and obvious.