Prosecutors say former ANC Limpopo treasurer Danny Msiza and former ANC Youth League leader Kabelo Matsepe are trying to delay the VBS bank heist case and it could take years before they return to court if their case is separated from that of their co-accused.
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 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)
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.
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)
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.
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)
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.
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)
To date, only Matodzi and Truter have been convicted and sentenced. Truter was released on parole in July.
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.
By Michelle Banda and originally appeared in The Daily Maverick
