The eight men arrested in connection with the plundering of VBS Mutual Bank face a raft of charges including money laundering, theft, fraud and corruption.
The group appeared in the Palm Ridge Regional Court on Thursday morning.
The total amount of money they are accused of stealing by creating fictitious accounts is more than R1.5-billion.
An 80-page indictment shows that the eight men are former VBS Mutual Bank and Vele Investments chairman Tshifhiwa Calvin Matodzi, former VBS Mutual Bank CEO Andile Ramavhunga, former CFO Philip Truter, former treasurer Phophi Mukhodobwane, former KPMG partner Sipho Malaba, former police officer Avashoni Ramikosi, and former Public Investment Corporation executives Ernest Nesane and Paul Magula.
Accused number 1: Tshifhiwa Matodzi
The indictment shows that Matodzi had control of several accounts held at VBS Mutual Bank. The accounts included: Vele investments, Petronet, Venmont, Robvet, Khavo, Scorpion, Tiisang.
Accused Number 2: Andile Ramavhunga
Between December 2016 and February 2018 Ramavhunga, the indictment shows, received about R19m into the account of “Dambale”, a company owned by Ramavhunga. Other accounts, held at VBS Mutual Bank, which Ramavhunga controlled, include those of Munyai Investments and another one named in the indictment as the “Ramavhunga” account.
Ramavhunga received R3.7m into the Munyai Investments account. The money came from the Vele and Vele Petroport accounts, the indictment shows.
Also, he received R795,000 into the Ramavhunga account from the Venmont, Vele and Petroport accounts.
Up to February 2018, Ramavhunga’s accounts had received a total of R23.4m.
Accused number 3: Philip Truter
The indictment shows that Truter received R2m into the FNB account of a company called Shangri La Investments.
Accused number 4: Phophi Mukhodobwane
On the instruction of Matodzi, Mukhodobwane received R5.6m into the account of Lamawave Ltd.
The indictment shows that a Peter Mukhodobwane, who was the sole shareholder of Lamawave, was a front for Phophi Mukhodobwane, the former treasurer.
In total, Mukhodobwane received R17.1m into Lamawave and the “Mukhodobwane” accounts.
Accused number 5: Sipho Malaba
The document shows that a company called Ihaawu Lesizwe, owned by Jacqueline Jaseman Malaba and Bafana Milundelwa Malaba, had the following accounts at VBS Mutual Bank: two vehicle finance accounts, a mortgage account and a classic business account.
Betanologix, another company owned by Jacqueline Jaseman Malaba and a Mwise Mapepo also had an account at VBS Mutual Bank.
Up to March 2018 both companies, which the indictment claims were fronts for Sipho Malaba, received up to R29.2m.
Further, on Matodzi’s instruction, an amount totalling R654,000 was paid into the trust accounts of Makaula Zilwa Inc and NGL attorneys on behalf of Malaba.
Accused number 6: Avashoni Ramikosi
The indictment shows that a company called Zanoware, owned by Alice Manye, was a front for Ramikosi. The company had received up to R750,000 from Venmont, one of the many accounts controlled by Matodzi.
Accused number 7: Ernest Nesane
Nesane, the prosecutors will argue, received up to R1.1m into the account of a company called Parallel Properties owned by Rudzani Ndwammbi.
Ndwammbi, prosecutors will argue, was a front for Nesane, as all monies received by Parallel Properties benefited the former PIC executive.
Also, on the instruction of Matodzi, prosecutors revealed that Nesane benefited from R5.6m which was paid into Parallel Properties from the Vele account.
Accused number 8: Paul Magula
The indictment shows that a company called Investar Connect Holdings, owned by a Lot Magosha, was a front for Magula.
The company was paid R2.8m for the benefit of Magula on instruction from Matodzi.
Another company, Hekima Capital, which had an account at VBS Mutual Bank, received R3.3m on behalf of Magula on Matodzi’s instruction.
In the indictment, prosecutors claim that all eight accused were associated and had formed an enterprise with the intention to defraud VBS Mutual Bank and enrich themselves in the process.
“The accused among other made use of the following legally registered entities to wit VBS Mutual Bank, Vele Investments (Pty) Ltd, Vele Petroport Holdings SA (Pty) Ltd, Venmont Holdings (Pty) Ltd and Robvet (Pty) Ltd to provide continuity of structure for the unlawful activities of the enterprise.
“The accused all associated with the enterprise. Members of the enterprise gained overall control of the financial systems of VBS Mutual Bank.
“The primary purpose of the enterprise was to enrich the members and associates through the theft of money from the general pool of funds in VBS Mutual Bank.
“The theft of the money was covered up through various acts of fraud and money laundering.
“Members of the enterprise also received and made corrupt payments as indicative of their and/or other people, known and unknown to the state, participation in the theft, or at the very least, in the acts of fraud that covered up the theft.”