Eight people were arrested for looting VBS Mutual Bank. They are being charged for corruption, insider trading, fraud, theft and money laundering. tTop officials from VBS Mutual Bank are Board member, Phalaphala Ramikosi, Philip Truter, the Chief Financial Officer, General Manager of Treasury Phophi Mukhodobwane, CEO Andile Ramavhunga and chairperson Tshifhiwa Matodzi. Among the arrested is former executive head of risk at the Public Investment Corporation (PIC) Paul Magula, Executive Head for Legal Counsel, Governance and Compliance, Mr Ernest Nesane and Sipho Malaba, a former partner at auditing firm KPMG.
VBS bank chairperson Tshifhiwa Matodzi
The indictment reveals that the VBS Heist Kingpin Tshifhiwa controlled several companies Vele investments, Petronet, Khavo, Scorpion, Tiisang, Venmont and Robvet which he used to move hundreds of millions of rands from VBS to other beneficiaries. He is accused to have swindled an excess of R300m.
Read More: Tshifhiwa Matodzi Biography, Net Worth, Cars, Houses
VBS Bank CEO Andile Ramavhunga
Ramavhunga received a total of R23.4m from December 2016 and February 2018.
Ramavhunga received R19m into the account of Dambale, a company. He also controlled a company called Munyai Investments and he received R3.7 and another R795,000 from Vele, a company controlled by Matodzi.
Ernest Nesane, former PIC executive
State prosecutors are arguing that the former PIC executive received R1.1m into Parallel Properties company owned by Rudzani Ndwammbi. He is accused for using Ndwammbi as his front and he also received R5.6m through Parallel Properties which was paid from Vele account.
Paul Magula, former PIC Risk Executive
Former executive head of risk at the Public Investment Corporation (PIC) Paul Magula is alleged to have been paid to ignore irregularities at the bank.
The accusations are that a company called Investar Connect Holdings, with Lot Magosha listed as a director is a front for Magula. Matodzi made VBS bank to pay R2.8m for the benefit of Magula and another R3.3m to another company by the name Hekima Capital.
Former VBS Board member, Phalaphala Ramikosi
VBS Board member, Phalaphala Ramikosi received up to R750,000 through a front Alice Manye who owns a company called Zanoware. Matodzi sanctioned the payment from from Venmont bank account.
Sipho Malaba, former partner at auditing firm KPMG
Sipho Malaba, a former partner at auditing firm KPMG. Malaba signed off the accounts of VBS bank and stated he was of the opinion that the bank is a going concern and did not report any major irregularities.
A company called Ihaawu Lesizwe, owned by two fronts of Sipho Malaba, Jacqueline Jaseman Malaba and Bafana Milundelwa Malaba, had a mortgage account and a classic business account with VBS Mutual Bankthe following accounts at VBS Mutual Bank: two vehicle finance accounts. Another front Mwise Mapepo had an account at VBS Mutual Bank.
Sipho Malaba, gobbled up to R29.2m ffrom the bank through his proxies. Matodzi’ further instructed that R654,000 be credited into the bank accounts of Makaula Zilwa Inc and NGL lawyers for the benefit of Malaba.
Philip Truter, the chief financial officer of VBS Bank
The Finance Chief received R2m into his Shangri La Investments company account at FNB bank.
General Manager of Treasury at VBS Bank Phophi Mukhodobwane
As has been the usual case with the rest of other looters, Matodzi instructed that R5.6m be transferred into Mukhodobwane’s company Lamawave Ltd.
On the instruction of Matodzi, Mukhodobwane received R5.6m into the account of Lamawave Ltd a front of the former head of treasury. Mukhodobwane unjustly benefited from a total of R17.1 from the VBS Mutual bank.
In total, received R17.1m into Lamawave and the “Mukhodobwane” accounts.