VBS-accused fails to have banking regulation put aside, courtroom orders his sequestration

VBS-accused and political fixer Kabelo Matsepe’s makes an attempt to have a banking law declared illegal failed when the Pretoria Top Court docket pushed aside his software. The courtroom has additionally ordered his sequestration.

Previous this yr, Matsepe, one of the most suspects within the VBS Mutual Financial institution scandal, challenged the validity of the Municipal Funding Laws, which limit municipalities from making an investment in mutual banks.

The law pertains to the ability of municipalities to speculate budget, and past that, best permits municipalities to speculate budget in funding sort deposits with banks, as in keeping with the rustic’s Banks Act.


The prison complaints levelled towards Matsepe in the principle VBS case, involving a string of alternative accused other folks, depend at the validity of the rules in questions.

If the rules had been declared unconstitutional, the case towards Matsepe would had been set out and the indictment towards him would have fallen away partly, the Nationwide Prosecuting Authority (NPA) stated.

However the courtroom dominated towards Matsepe, successfully permitting the NPA to get on with its prison fees towards him.

Justice slowly edges nearer for VBS looters [Aug 2019]
8 suspects arrested in SA’s ‘largest financial institution theft’ VBS fraud case [Jun 2020]
Suspects accused of large VBS robbery seem in courtroom [Jun 2020]
VBS Financial institution liquidators take a scalp within the type of Firmanox [Dec 2020] 

Tens of tens of millions for ‘facilitating offers’

Matsepe’s corporate, Moshate Funding Team, used to be allegedly paid tens of millions in fee for being a go-between and facilitating offers between municipalities and VBS Mutual Financial institution.

The corporate gained over R35 million from this association, in step with The Nice Financial institution Heist report back to the Prudential Authority by means of Recommend Terry Motau, following his forensic investigation into the cave in of VBS.

In a separate judgment, a last order to sequestrate Matsepe used to be passed down, performing in favour of the South African Income Carrier (Sars), which is looking for over R61 million in tax associated with tax checks between 2015 to 2018.

Sars discovered Matsepe to be factually solvent, however that he would no longer be capable to settle his money owed as his liabilities, amounting to R66.9 million, exceed his property.

It stated his liabilities exceed his property by means of nearly R62 million.

Matsepe’s liabilities include a R5.4 million bond from VBS that used to be registered in 2017 and the R61.5 million owed to Sars.

His property come with two cars valued at R115 000 every, and a 3rd car valued at R880 000.

Sars argued that it might be to the benefit of each Matsepe and his collectors that his property be sequestrated “within the instances as there’s a cheap risk of fee of a dividend to his collectors”.