I won’t hand over my assets — VBS boss
CEO of Vele Investments and former VBS Mutual Bank COO Robert Madzonga has instructed his lawyers to appeal against a final sequestration order against him.
CEO of Vele Investments and former VBS Mutual Bank COO Robert Madzonga has instructed his lawyers to appeal against a final sequestration order.
“I’m aware of the court’s decision. I’m appealing, and I will not hand over any of my assets and properties to the liquidators,” Madzonga said. “I am presumed innocent until the appeals court says otherwise.”
Madzonga is said to have benefited by more than R30m through a network of companies and fronts from VBS. He was named in the report, “The Great Bank Heist”, released in 2018 by advocate Terry Motau.
The report, commissioned by the SA Reserve Bank, found that over the past three years more than 50 people had benefited from “gratuitous” payouts adding up to almost R2bn from the Limpopo-based bank.
Madzonga, who is also a pastor, has assets that include an R8.5m mansion in Blue Hills, north of Johannesburg, and a home in Plettenberg Bay.
His wife, former beauty queen Khosi Madzonga, has flaunted his cars, including a Brabus-tuned Mercedes-Benz G63, which sells for R2.5m, a Lamborghini and a Rolls-Royce Phantom, on social media.
In August, the high court in Johannesburg also granted a final sequestration order for the assets of former VBS Mutual Bank CEO Andile Ramavhunga and his wife, Zanele.
Ramavhunga, who could not be reached for comment, is said to have benefited by more than R28m through the same network as Madzonga.
VBS liquidator Anoosh Rooplal said he was not aware of an appeal application. “We, however, cannot stop any person or entity from enforcing their legal rights. As a liquidator I will continue to follow due legal process, and will take the actions necessary to recover all monies owed to the bank.
“This is to the benefit of all creditors. All clients who owe VBS monies are encouraged to continue with their payment obligations,” Rooplal said.
“The final sequestration of the Madzonga and Ramavhunga estates concludes our efforts to sequestrate all the VBS executives involved in and who benefited from the wide-scale fraud perpetrated at VBS.
“The final sequestration orders will enable the trustees of their respective estates to intensify the recovery of assets, which ultimately can accrue to the benefit of the estate of VBS.”
A legal team is pursuing outstanding amounts on a number of VBS overdrafts, mortgages and other debts that are nonperforming or in arrears, he said.
“In some cases, the liquidator has entered into payment arrangements with clients to settle the debt over time periods which are considered acceptable and which are to the benefit of creditors,” he said.
Judge Elias Matojane said Madzonga, a lawyer by profession, was first appointed as Vele’s COO and later as its CEO, and served as a director of Insure Group Managers, Black Label Telecoms and Bonulog.
“All these entities benefited directly from the fraudulent scheme. Significant fraudulent transactions that involved VBS, Vele and Insure, occurred during Madzonga’s tenure as Vele COO and director of Insure.”
The judge said there were strong indications that Madzonga had personal knowledge of a fraudulent scheme at VBS.
“Madzonga knew of the VBS liquidity crisis as early as February 2018.” He lied about a loan from a friend to conceal fraudulent activities, the judge said.
“Far from assisting VBS with its liquidity crisis, [his] actions were intended to conceal the liquidity crisis at VBS caused by the fraudulent scheme.”
The judge said Ramavhunga was involved when Vele fraudulently acquired shares valued at R80m in VBS to become the majority shareholder.
The estates of VBS chair Tshifhiwa Matodzi, head of treasury Phophi Mukhodobwane, and CFO Nicholas Truter were sequestrated in October 2018.