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How VBS Mutual Bank was plundered
As VBS Mutual Bank’s crash paralyses municipalities after it lost R1.5bn of their funds, details are now emerging of how Vhavenda King Toni Mphephu Ramabulana and the bank’s executives lived the high life, flying in helicopters, driving Range Rovers and Mercedes-Benz Vianos, and shopping at exclusive boutiques.
A stack of bank statements City Press has obtained show how Ramabulana; Tshifhiwa Matodzi, the bank’s former chairperson and Vele Investments founder; and former Vele chief executive Robert Madzonga allegedly dipped into hundreds of millions of rands belonging to depositors to finance their lifestyles.
This all took place while Andile Ramavhunga was the chief executive of VBS.
The documents also show how the bank collapsed under the weight of hundreds of millions of rands in unpaid overdrafts, vehicle finance deals, mortgage bonds and complex intercompany loans between VBS, Vele Investments and other Vele-controlled companies.
Vele Investments is VBS’s main shareholder, with a 53% stake in the bank, but it appears to have used the bank to keep its other businesses afloat.
READ: Situation at VBS Bank much worse than we thought, says SARB’s Kuben Naidoo
The bank statements show how Ramabulana received a monthly salary of R310 000 from Vele, which was deposited into his VBS account. The bank also financed the king’s five cars, worth more than R6.5m in total, including a top-of-the-range Mercedes-Benz Viano worth R1.6m and a R1.4m Range Rover.
The statements also show that Ramabulana spent R26 000 on designer clothing at the exclusive Giorgio Armani store in Sandton, Johannesburg, and a further R12 000 at La Martina, a boutique sports and leisure clothing store in Nelson Mandela Square, in one day.
VBS also paid the Dzata Trust, registered under Ramabulana’s legal adviser Paul Makhavhu’s name, R9m – some of which was used to pay for the monarch’s Viano, his Range Rover and a mortgage for his house in the upmarket gated Johannesburg suburb of Dainfern. The trust also enjoyed a R6m overdraft from the bank.
The king is known to throw lavish parties at his home, where guests are treated to bottles of their choice of expensive whisky or champagne on arrival, which is served by the king’s personal butler, who is also his aide and driver.
Those close to the king also apparently benefited from the bank’s largesse. In March last year, a close ally of his…
How toni was made king by Zuma.
Robert Madzonga was fired by MTN for embezzling ITC. He then went and joined Tshifhiwa Maṱodzi as Vele Investments COO. MTN pursued civil and criminal charges against Madzonga.
A plan was hatched to open doors for Vele Investments.
toni peter mphephu was brought in as Dyambeu Investments holding director.
R18m was taken from VBS and given to Michael Hulley to give to Zuma so that Zuma does Vele Investments these favours.
1. Recognize ndumi toni as VhaVenḓa king
2. Make Madzonga civil and criminal charges with MTN to go away.
Michael Hulley took R7m for himself and Zuma received R11m.
Few weeks later, Zuma met with MTN chairman, Phuthuma Nhleko. Madzonga’s case with MTN went cold or was never vigorously pursued.
A week later, Zuma recognized ndumi toni as VhaVenḓa king, even though there were disputes within the Mphephu Ramabulana Royal House.
For ndumi toni to be recognized, Robert Madzonga and Tshifhiwa Maṱodzi hatched another plan to get senior chiefs and any other chief who recognizes ndumi toni to be on Vele payroll or to derive benefits from Vele Investments, even though they were not employees nor shareholders.
No less than seven senior chiefs are on Vele Investments payroll, each earning R50k a month. Other chiefs earn between R25k to R50k, depending on seniority and influence in royal matters.
Those of you who still believe ndumi toni is a king, you need to look in the mirrror.
He’s a corrupt person who knew what was going on and has aided and abated in siphoning VBS.
toni earns R310k from Vele Investments and he’s not an employee, but a shareholder. Shareholders don’t earn salaries, but earn dividends.
The VBS Zuma loan of R7.8m was a gift to Zuma, as to date, it has not been serviced and there was a plan to write it off. Fortunately, the curator went in before that happened.
Hard earned money from hard working people and burial societies has been used to buy Madzonga’s justice and Toni’s kingship.
The two masterminds behind this bilious plan is Tshifhiwa Maṱodzi and Robert Madzonga. Others joined in the thievery and corruption and looting bandwagon when the gravy train was long in motion.
Many people have benefited from these proceeds of crime, including EFF, ANC, Zuma and many politicians. That’s why Sello Julius Malema and Nyiko Floyd Shivambu have propinquity with ndumi toni and his boys who run royal gardens activities.