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ANC oversees disciplinary action of VBS corruption accused

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ANC oversees disciplinary action of VBS corruption accused

ANC secretary-general Fikile Mbalula
ANC secretary-general Fikile Mbalula

17th April 2023

By: News24Wire

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Citing dissatisfaction with how the African National Congress (ANC) in Limpopo has handled the fallout from alleged corruption involving VBS Mutual Bank, ANC national leaders resolved on Sunday night to oversee how those accused in the matter are dealt with. 

Secretary-general Fikile Mbalula communicated this after a nine-hour meeting between the party's national working committee (NWC) and provincial executive committee (PEC). 

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"On issues of corruption, in particular those related to the VBS Mutual Bank, we (the NWC) have agreed that now national leadership is going to take it upon itself to address all issues pertaining to VBS along with the provincial ANC. 

"We are doing so to avoid the hurdles we have been encountered. We can't be talking about the same thing for the past five years. We need decisive action to be taken," Mbalula said.

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He added that it was prudent to act now, given the importance of Limpopo for the ANC's electoral performance. 

Mbalula said a trust deficit in its electorate in the province could spell disaster during next year's elections. 

Among those who have been accused is the former executive mayor of the Vhembe municipality in Limpopo, Florence Radzilani. She is now an MEC in Limpopo.

According to a report advocate Terry Motau compiled after conducting a forensic investigation into VBS Mutual Bank for the South African Reserve Bank, Radzilani allegedly "cried" for a Christmas present from the fraud-riddled bank. 

In his report, Motau said "one of the most illuminating examples of the rampant corruption and bribery that occurred is to be found in a WhatsApp discussion between (Kabelo) Matsepe, the alleged middleman in soliciting municipal deposits for the now defunct bank, and former [VBS chairperson Tshifhiwa] Matodzi on 20 December 2017".

The discussion was allegedly about regaining gratuities.

"The mayor of Vhembe is crying; she says we must give her and the speaker a Christmas [present] because they are the ones who are making sure we keep that money for six months. We gave her 300K, and she cried and said we gave juniors R1.5 million and we gave her 300K … we said we would consult with you and will sort her out Friday morning … if we can, let's give her 1% on a level of trust because she did keep her promise that she will block the money from being withdrawn," Matsepe wrote in a WhatsApp message to Matodzi. 

Matodzi is said to have replied: "Go ahead … But she must know the formula."

The Vhembe municipality lost R300-million.

The Hawks have arrested more than 20 people countrywide in connection with the VBS saga.

They include Limpopo ANC heavyweight Danny Msiza, former mayor of the Sekhukhune District Municipality, Julia Mathebe, and former municipal manager of the Collins Chabane Local Municipality, Charlotte Ngobeni

Given the failure to charge her, Radzilani is suing Motau and Matsepe for defamation.

Despite being implicated in the VBS report, Radzilani received a promotion when she was allowed to contest during the provincial elections. She retained her deputy chairperson role and was appointed as an MEC.

Mbalula declined to comment on whether the national leadership's decision to take over the handling of the VBS findings and disciplinary process was an indictment on the provincial leadership.

He said the national leadership would not only deal with those accused in Limpopo but across the country, where municipalities deposited money with the bank. 

"It's a way of restoring trust with our people that when the ANC says it will deal with a matter, it really does," Mbalula said.

He also indicated that the party would take action against Limpopo leaders accused of manipulating party lists in the lead-up to the 2021 municipal elections and placed those close to them higher up on the list so they could become councillors. 

Mbalula said a report former president Kgalema Motlanthe had compiled was presented to the NWC and President Cyril Ramaphosa would make its contents public shortly.

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