Alleged business partners Danny Msiza and Kabelo Matsepe, implicated in the VBS Mutual Bank corruption scandal, are seeking to have their case separated from the other defendants.
This request was disclosed during their appearance in the Pretoria High Court on Monday. The session, initially intended as a pre-trial, did not set a date due to a lack of agreement between the state and the defense attorneys.
Msiza and Matsepe, represented by former National Prosecuting Authority head Shaun Abrahams, submitted an urgent joint application.
This development follows the arrest of VBS fraud ringleader and ex-chairman Tshifihwa Matodzi, who received a 15-year prison sentence after being convicted on 33 counts of corruption, theft, fraud, money laundering, and racketeering.
Matsepe, identified by Matodzi as a key figure in the VBS looting scheme, faces mounting legal pressure as the South African Revenue Service (Sars) seeks to seize R61 million from him.
The judge postponed the matter, setting a deadline of July 29 for the submission of answering affidavits, with replies due by August 5. Legal representatives will file their arguments on August 12, to be heard on August 14.
In his affidavit, Matodzi claimed that Matsepe, a businessman and VBS agent, was involved in sourcing investment deposits. Matodzi recounted meeting Matsepe and later Msiza at the Fusion Boutique Hotel in Polokwane.
“To my knowledge, Danny was Matsepe’s business partner. Matsepe was eager to be appointed as a VBS commission agent, expecting a 2% commission for any municipal investments he secured,” Matodzi stated.
Matodzi alleged that Matsepe and Msiza leveraged their political connections to secure municipal investments, particularly in Limpopo. Both men, representing Moshate, were appointed as VBS commission agents.
Msiza, a politician and former Provincial Treasurer of the ANC in Limpopo, was indirectly linked to VBS through his association with Matsepe and Moshate. Matodzi detailed Matsepe’s irregular activities, including discussions on strategies to attract more municipal investments.
On Monday, the Tshenuwani Farisani Foundation highlighted the VBS collapse’s devastating impact on over 500 individuals, burial societies, and investment organizations around Venda, leaving them bankrupt.
The foundation praised the EFF’s commitment to reimburse a VBS beneficiary with R5 million and a monthly R1 million donation. Their statement condemned Matodzi and his associates for using entities like Vele Investments to funnel stolen VBS funds for personal luxuries.
In celebration of his 77th birthday, Farisani will support 77 VBS victims with food hampers and blankets.