South African exec Tshifhiwa Matodzi sentenced to 495 years for $130-million bank fraud

Omokolade Ajayi -

Key Point

  • Tshifhiwa Matodzi sentenced to 495 years for VBS Mutual Bank scandal, will serve 15 years after pleading guilty to 33 charges.
  • Matodzi admitted to orchestrating VBS scandal from 2017-2018, leading to the bank’s collapse and widespread financial devastation.
  • Several high-profile individuals charged in the scandal; former CFO Phillip Truter testified against accused, receiving 10-year sentence.

South African executive Tshifhiwa Matodzi, the former chairperson of the defunct VBS Mutual Bank, has been sentenced to 495 years in prison for his role in a $130-million banking scandal that rocked South Africa.

Despite the lengthy sentence, Matodzi, who masterminded the banking scandal that caused national outrage in South Africa, will serve an effective 15 years behind bars after pleading guilty to 33 charges, including theft, fraud, money laundering, and racketeering.

Tshifhiwa Matodzi, VBS heist mastermind admits guilt

The Pretoria High Court handed down the sentence on Wednesday following a plea and sentence agreement.

Tshifhiwa Matodzi admitted to orchestrating the scheme from 2017 to 2018, creating fictitious credit in VBS accounts that were then funneled into other accounts.

The scandal, which led to the collapse of VBS Mutual Bank, was dubbed “the great bank heist” in a 2018 report ordered by the central bank.

Widespread corruption unveiled

Matodzi, 47, was charged alongside several high-profile individuals, including former VBS CEO Andile Ramavhunga, former treasurer Phophi Mukhobdobwane, KPMG auditor Sipho Malaba, and Lieutenant-General Avhashoni Ramikosi.

Phillip Truter, the bank’s former chief financial officer, turned state witness and testified against the accused. Truter was sentenced to 10 years in prison in 2020, with three years suspended.

The VBS scandal implicated a broad network of individuals, including Danny Msiza, businessman Kabelo Matsepe, and former VBS COO Robert Madzonga. These figures allegedly transformed VBS from a modest mutual bank serving rural communities into a slush fund for corrupt politicians and local government leaders.

Matodzi’s sentence offers little solace

VBS Mutual Bank was placed into final liquidation by the North Gauteng High Court on November 13, 2018, with Anoosh Rooplal appointed as liquidator.

The scandal left a trail of financial devastation, particularly among pensioners and cash-strapped municipalities who were unlikely to recover their losses.

Tshifhiwa Matodzi’s sentence, while significant, offers little solace to the victims of one of South Africa’s most notorious financial crimes.