Headline: Former VBS Bank Chair Alleges Bribery of Ex-Treasury Chief to Prevent Municipal Withdrawals

In a dramatic turn in the ongoing investigation into the VBS Mutual Bank collapse, Tshifhiwa Matodzi, the disgraced former chairperson of the bank, has made explosive allegations implicating former National Treasury Director-General, Dondo Mogajane, in a high-level bribery scheme. Matodzi claims in a sworn affidavit, part of his plea agreement, that Mogajane accepted a R1 million bribe in 2017 to prevent municipalities from withdrawing their investments from the embattled bank.

According to Matodzi, the bribery allegedly took place in August 2017, a period marked by concerns among municipalities after the National Treasury advised them that investments in mutual banks were prohibited under the Municipal Finance Management Act. Fearing potential financial instability at VBS, municipalities had begun exploring options to pull their funds. Matodzi claims that Mogajane was paid to discourage this trend, an act which could have potentially helped VBS remain afloat longer amid growing financial turmoil.

Matodzi details that he held at least five meetings with Mogajane, which were reportedly organized by Raliom Razwinane, owner of Gundos Wealth Solutions. These meetings allegedly took place at various locations, including Cedar Square in Fourways, VBS offices in Rivonia, and even premises of the Treasury and the South African Reserve Bank. Matodzi notes that the gatherings involved other individuals, mentioning associates such as "Chuma" and Dr. Mkhize, who reportedly attended some of these meetings.