By Lehlohonolo Lehana.
Former Treasury director-general Dondo Mogajane has denied claims by former-VBS Mutual Bank chairperson Tshifhiwa Matodzi of receiving a R1-million bribe.
According to the leaked affidavit made in his plea bargain, Matodzi implicated Mogajane in playing a role in the cover up of “The Great Bank Heist” which looted R2.3 billion from VBS, and allegedly accepted a R1m bribe for his role.
Matodzi said that he had met Mogajane five times through Raliom Razwinane, who served as an agent for VBS to find investment deposits, and in one of these meetings a bribe to Mogajane was discussed.
He said the bribe was to facilitate the withdrawal of the circular issued by National Treasury in August 2017, warning municipalities that deposits made at a mutual bank contravened municipal finance regulations, and were not allowed.
In his response to the allegations, Mogajane, who currently works for the Moti Group as chief executive, responded to the allegations by saying he was one of the people who stopped Matodzi and prevented VBS from pilfering South Africa any further.
“I categorically deny that I have ever received corrupt monies or bribes. I proudly served with distinction, honesty, loyalty, and humility as a dedicated public servant for 23 years, the last five of which were as Director-General of National Treasury, “he said.
“As evidence of the stance that both myself and National Treasury took against Matodzi and VBS, all filed affidavits, statements, minutes of meetings, circulars, and general records dating as far back as 2017, are with the relevant authorities.
“I will not be trialled by corrupt individuals or those driving their own agendas, and I will not allow anyone to tarnish my name. Ultimately, I am proud to have been part of the team that stopped Matodzi and VBS’ corrupt and pilfering activities.”
According to Matodzi, Mogajane had promised to grant VBS a special 18-month dispensation to continue accepting municipal investments, during which it was in a process of getting a commercial banking licence.
Mogajane said he did meet with Matodzi “several times” during his tenure. The meetings occurred around October 2017 in Johannesburg.
“Matodzi’s affidavit conveniently excludes the many meetings held in the presence of other people, including with VBS management, the Public Investment Corporation (PIC) as a VBS shareholder, the South African Reserve Bank (SARB), and other National Treasury representatives,” Mogajane said.
“As can be evidenced by minutes of these meetings, we made it very clear that legally, VBS Mutual Bank was not allowed to continue conducting investment deals or receiving deposits from municipalities.
Mogajane said municipalities cannot make deposits with institutions that are not regulated as per the Banks Act and it was on this basis that he met with Matodzi to discuss regularising VBS as a bank.
VBS Mutual Bank collapsed in March 2018 following extensive looting of its funds by its own executives and shareholders in an elaborate fraudulent scheme that robbed depositors of more than R2 billion.