How I blew it — VBS style
Matodzi, mastermind of the VBS looting, went from living the high life in glitzy resorts to living in a Randburg back room
The mastermind behind the VBS heist blew through hundreds of millions of rands travelling the globe and staying at some of the world’s most exclusive destinations — only to end up broke and eking out a living in a back room in middle-class suburbia.
In a spectacular fall from grace, Tshifhiwa Matodzi now lives in downscaled quarters of a R2.1m house occupied by his ex-wife in Randburg, a far cry from the luxury Eagle Canyon estate home he once owned.
The convicted fraudster had his assets seized by the state and was also allegedly conned out of part of his ill-gotten fortune by his fellow partners in crime.
Matodzi is now so broke that he had to rely on legal-aid lawyers to defend himself against the 33 counts of corruption, theft, fraud, money laundering and a pattern of racketeering activities related to the collapse of the bank.
Sources close to Matodzi said he had no choice but to plead guilty as he no longer had the financial means to fight the case against him.
The Sunday Times further understands that part of his plea deal, which includes full co-operation with the state, as evidenced in his tell-all affidavit, will see him effectively serve only one 15-year term even though he was sentenced to 495 years for all 33 counts. He is due to hand himself over to authorities next week to begin his sentence.
Debt collectors were called in last year to recover arrears of R43,000 that Matodzi owed in school fees at one of Johannesburg’s elite prep schools. Gone are the supercars, private jets and luxury holidays.
In his heyday, the businessman was on top of world. He owned a fleet of luxury cars including a R6.5m Ferrari Spider and a R1.4m Porsche 911 Carrera. He also owned a R12m Bell helicopter, all bought with money siphoned out of the bank on Matodzi’s instruction.
In 2018 the Sunday Times published how Matodzi pocketed more than R352m through a vast network of companies and fronts. This financed, among many other things, a stay at the Hotel Alyeska nestled in a lush valley surrounded by snow-capped mountain peaks some 70km north of Anchorage, Alaska.
“I will bring lots of ice to take to Venda,” Matodzi joked with a friend who marvelled at the pictures he posted on Facebook.
More than R2bn was looted from VBS. Those close to the initial VBS investigation said that because some of the accused in the case no longer had access to their ill-gotten gains, they were more likely to cave in like Matodzi and former VBS CFO Philip Truter, who was sentenced to 10 years in prison with three years suspended, in 2020.
“Matodzi got broke and desperate and that is why he is creating stories that he was robbed of his cars,” said one source with intimate knowledge of Matodzi’s dealings and lifestyle.
“He admitted to stealing more than R300m but went broke — that is very stupid. And he knows very well there were no assets left in Vele,” the source said. Vele Investments was a majority shareholder in VBS, owned by Matodzi and used as the main vehicle to embezzle funds from the bank.
“It was just a shell when he gave his lawyer the power of attorney and that is why he agreed that the cars be sold. He is very sick but at least he is going to get food and medical care in jail.”
Another source said Matodzi’s ex-wife Thabelo Booi had allowed him to stay in the back room of the house she bought in Blairgowrie in 2020.
“The wife bought the house after the VBS collapse after they were renting an apartment in Bryanston and when he found himself in trouble the wife decided to go back to work. But she was kind to him, she just opted not to have him inside the house and gave him a back room for the sake of the kids. All his clothes are still there by the wife,” this source said.
Matodzi admitted in his affidavit that he even used his 74-year-old mother as a director in various companies to siphon off about R24.7m from VBS in loans and overdrafts, without her knowledge. “As I developed a relationship with VBS as a shareholder, my mother opened for herself personal and business accounts at VBS. At the time when VBS shares became available, I informed my mother, and I gave her money to purchase those shares,” said Matodzi.
He also claims he was fooled by his erstwhile lawyer, Joseph Maluleke, and business associates into fleeing to London in 2018 to evade what they said was his imminent arrest by the Hawks days after the South African Reserve Bank placed VBS under curatorship.
Matodzi said his total bill for Maluleke was about R700,000, which he settled from the proceeds of the sale of his Ferrari. He also took the lawyer’s advice and fled to London.
“Maluleke suggested I give him power of attorney for him to act on my behalf and Vele during my absence and I agreed. I was subjected to untold pressure by Maluleke and his associates (Danny Msiza and Kabelo Matsepe) who, I realised later, aimed to steal Vele and make a profit from the sale of motor vehicles.”
He said Maluleke sold the Ferrari, the Porsche 911 Carrera, a Mercedes-Benz Viano and a Range Rover Lumma for “millions” but he received only R1.7m. A day after arriving in London he realised the warning of his imminent arrest had been a ruse.
Besides confirming his and his co-accused involvement in the looting of the bank, Matodzi also implicates others, including the leaders of the EFF — Julius Malema, his deputy Floyd Shivambu and secretary-general Marshall Dlamini.
his testimony, he said he met Malema, Shivambu and Dlamini at the party’s Sandton penthouse at the time of the Nkandla saga when the party was criticising the bank for giving Zuma a home loan. Matodzi said he promised the party leaders VBS would pay the EFF an initial R5m and thereafter make a R1m monthly donation if they ceased causing a stir about the bank’s role. The money was paid to an account in the name of Sgameka.
“To my knowledge Sgameka is a company owned by Brian Shivambu, brother of Floyd Shivambu ... The company was provided to me by Floyd to make payments I promised the EFF.
“I made this promise after news broke in the media that VBS Mutual Bank had granted former president Jacob Zuma a home loan for his Nkandla residence. Negative [publicity] arose in the country,” his witness testimony reads.
“The EFF had started a campaign of mentioning VBS Mutual Bank in its political rallies through its president Julius Malema. As chair of VBS Mutual Bank I decided Malema and the EFF should be approached for VBS Mutual Bank to explain its position and how the loan was granted. Present there [at the meeting in Sandton] was Malema, Floyd Shivambu and Marshall Dlamini. Dlamini did not participate,” he said.
Attempts to reach EFF leadership, including spokesperson Leigh-Ann Mathys proved fruitless, but Malema has previously been quoted as saying: “There is nothing that implicates us. Why are we not being arrested? Why are we not being charged if these [allegations] are legitimate? Why would a company implicated in a report of corruption and fraud not be charged?”
Hawks head Gen Godfrey Lebeya told the Sunday Times the unit was getting more names from its investigations into VBS than those in the initial 2018 VBS report by Advocate Terry Motau SC.
“There are those who are now spilling the beans and no longer want to be part of the criminal syndicate and are co-operating with law enforcement. We are dealing with individuals in a criminal syndicate and each one of those will have to account, it is just a matter of time because others see that pleading guilty might be a shorter route because the exercise is very costly,” said Lebeya.
He said it appeared that Matodzi might have been approached by impostors purporting to be Hawks officers as those involved in the fraud tried to cheat each other. “Our team involved in this investigation is incorruptible. If evidence arises, we will deal with anyone who may have been involved.”