Mastermind in VBS Bank collapse sentenced to 495 years

VBS Mutual Bank collapse mastermind and former Chairperson of the Board, Tshifhiwa Matodzi was on Wednesday sentenced to 495 years of direct imprisonment.

Matodzi was the primary accused in the case which involved severe offences. This also includes a pattern of racketeering activities that culminated in the downfall of VBS Mutual Bank.

He pleaded guilty to 33 counts which include corruption, theft, fraud and money laundering. Matodzi also entered into a plea agreement with the State. He was sentenced to 15 years on each count by the Palm Ridge Specialised Commercial Crimes Court in Gauteng.

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The 47-year-old has been described as the kingpin of a scheme that robbed pensioners and cash-strapped municipalities of their deposits with the bank.

Although the combined sentence amounts to 495 years, the court has ordered that the sentences for counts 2 to 33 run concurrently with count 1. Consequently, Mr Matodzi will serve an effective 15 years imprisonment. He was also declared unfit to possess a firearm. 

TSHIFHIWA MATODZI SENTENCED TO 495 YEARS IMPRISONMENT FOR VBS MUTUAL BANK COLLAPSE

“This outcome underscores the commitment of the DPCI and the justice system. To holding individuals accountable for their actions,” said the Directorate for Priority Crime Investigation [DPCI].

“Particularly those that significantly harm the financial sector and public trust. The DPCI remains steadfast in its pursuit of justice and ensuring that such offences do not go unpunished.

“The National Head of the DPCI, Lieutenant General Lebeya, has extended his heartfelt congratulations to the dedicated investigation team and the prosecutors who worked tirelessly on this case.

“This conviction is a testament to the unwavering commitment and exceptional skills of our team. We have always maintained that we will leave no stone unturned in our pursuit of justice and this outcome reinforces our resolve.

“Let this serve as a stern warning to those who believe they can escape the long arm of the law. The DPCI will not relent in its mission to bring criminals to justice. We are actively pursuing other suspects in this case. They too will face the full might of the law,” said Lieutenant General Lebeya.