Categories: Business

Dali Mpofu Confirms EFF Received Funding from Bankrupt VBS Bank

Former EFF chair, Dali Mpofu, has confirmed that the party received funding from the bankrupt VBS Bank. The revelations emerged from an affidavit written by the ex-chair of VBS Mutual Bank and Vele Investments, Tshifhiwa Matodzi, who suggested that VBS contribute R5 million and an additional R1 million monthly to the EFF. Mpofu admitted that the party had received funds from the failed bank, but claimed that the information was already in the public domain. The impact of the disclosure on both the EFF and VBS’s reputation remains uncertain.

Dali Mpofu Confirms EFF Received Funding from Bankrupt VBS Bank

Former EFF chair, Dali Mpofu, confirmed that the party received funds from the now bankrupt VBS Bank. The leak of an affidavit written by ex-chair of VBS Mutual Bank and Vele Investments, Tshifhiwa Matodzi, revealed that the party was a beneficiary of illicit funds. Matodzi suggested that VBS contribute R5 million and an additional R1 million monthly to the EFF.

Prominent advocate Dali Mpofu, the former chair of the Economic Freedom Fighters (EFF), has confirmed that the political party was a beneficiary of funds from the now bankrupt Venda Building Society (VBS) Bank. The issue re-emerged in the public sphere following the leak of a potent affidavit written by Tshifhiwa Matodzi, the ex-chair of VBS Mutual Bank and Vele Investments. It is estimated that a staggering R2 billion was illicitly drained from VBS in a fraudulent scheme involving local government authorities and dishonest politicians.

VBS Bank’s Downfall and Impact on Its Customers

VBS Bank, previously deemed as a beacon of financial empowerment for economically disadvantaged citizens, catapulted thousands of its middle-income clientele into financial ruin following its liquidation in March 2018. Matodzi’s affidavit illuminated the transactions made to the EFF president Julius Malema and his deputy Floyd Shivambu.

In the aftermath of the controversy stirred by the bank authorizing a R10 million loan to the former president Jacob Zuma for his Nkandla residence, Matodzi stated that he approached Malema and the EFF to endorse VBS’s position and the loan’s approval. He also provided details of his rendezvous with Malema and Shivambu, which took place in Sandton around April/May 2017. Marshall Dlamini, the party’s existing Secretary-General, was also in attendance at the meeting, although he did not actively participate.

The Details of the Donation to EFF

Matodzi suggested that VBS contribute R5 million and an additional R1 million monthly to the EFF. He was adamant that the money could only be dispensed into a VBS account, which necessitated the EFF to open an account with VBS. He revealed, “Floyd told me that they had opened an account at VBS in the name of a company named Sgameka. Following my instructions, a transfer of R5 million, as pledged, was executed from Malibongwe to Sgameka on 8 June 2017. Subsequent payments were made to the Sgameka VBS account every month and were financed by Vele or any of Vele’s subsidiaries. Myself, Julius and Floyd perceived the prospect of donation as rewarding, hence Floyd and Julius refrained from divulging EFF’s own banking details for these ‘donations’.”

During an interview with Newzroom Afrika, Mpofu admitted that his party had indeed received funds from the failed bank. However, he maintained that the revelations in Matodzi’s affidavit were not groundbreaking, claiming its content was already in the public domain. “The Matodzi affidavit, if anything, offers more transparency about the beneficiaries… The man testifies to these donations and the methods they employed. It’s common knowledge that the EFF benefited from VBS funds,” Mpofu declared.

Controversy Surrounding the Donations

In the midst of affirming that all political parties accept donations, Mpofu challenged the insinuations of corruption, fraud, and money laundering in the instance where EFF was the recipient of donations from VBS as though they were a veiled indictment. However, one question remains unanswered: how will this disclosure influence the public’s opinion of the EFF and the tarnished reputation of the VBS Bank?

Did the EFF receive funding from VBS Bank?

Yes, former EFF chair, Dali Mpofu, confirmed that the party received funding from the now bankrupt VBS Bank.

How much funding did the EFF receive from VBS Bank?

Tshifhiwa Matodzi, the ex-chair of VBS Mutual Bank and Vele Investments, suggested that VBS contribute R5 million and an additional R1 million monthly to the EFF.

What impact did VBS Bank’s downfall have on its customers?

The liquidation of VBS Bank in March 2018 catapulted thousands of its middle-income clientele into financial ruin.

How did the donation to the EFF work?

The money could only be dispensed into a VBS account, which necessitated the EFF to open an account with VBS. The transfer of R5 million, as pledged, was executed from Malibongwe to Sgameka on 8 June 2017. Subsequent payments were made to the Sgameka VBS account every month and were financed by Vele or any of Vele’s subsidiaries.