Mpofu denies fraud and corruption claims despite admitting EFF received money from VBS
EFF member advocate Dali Mpofu has justified the “contributions” that his party allegedly received from the now-defunct VBS Mutual Bank.
Advocate Dali Mpofu, former chairperson of the Economic Freedom Fighters (EFF), has confirmed that the now-defunct Venda Building Society (VBS) Bank provided funds to the party
Mpofu says this as the VBS matter has resurfaced following the leaked and explosive affidavit by former chairperson of VBS Mutual Bank and Vele Investments Tshifhiwa Matodzi.
BACKGROUND TO THE EFF AND VBS SAGA
VBS is estimated to have had R2 billion stolen from its coffers, in a scam which saw regional government administrations and corrupt politicians help themselves to the bank’s profits. The bank, which used to pride itself on helping poor citizens with their financial investments, left thousands of working class people in the lurch following its collapse. VBS was liquidated in March 2018.
In his affidavit, Matodzi explained how the payments to EFF president Julius Malema and his deputy Floyd Shivambu came about.
Following negative publicity after the bank granted former president Jacob Zuma a R10 million loan for his Nkandla homestead, Matodzi said he decided that Malema and EFF should be approached for VBS to explain its position and how the loan was granted.
Further, he explained that he met with Malema and Shivambu in Sandton around April/May 2017. The party’s current Secretary-General, Marshall Dlamini, was also present. However, he did not participate in the meeting.
“I then proposed that VBS can donate R5 million and R1 million per month to the EFF. I also madeit clear that the amount could only be deposited into a VBS account, and that the EFF should therefore open a bank account with VBS.
“At some stage Floyd indicated to me they have opened an account at VBS in the name of a company called Sgameka. A transfer of R5 million as promised was made on my instructions from Malibongwe to Sgameka on 8 June 2017. Subsequent payments were made to the Sgameka VBS account every month and were paid from Vele or any of Vele’s subsidiaries. Myself, Julius and Floyd understood that concept of donation to mean gratification hence Floyd and Julius did not provide me with EFF’s own banking details for these ‘donations’,” Matodzi explained.
DALI MPOFU ADMITS HIS PARTY RECEIVED MONEY FROM THE DEFUNCT BANK
In an interview with Newzroom Afrika, Mpofu said there is nothing new in Matodzi’s affidavit because its content has always been in the public domain.
“The Matodzi affidavit, if anything, sheds a better light as to who the beneficiaries are and who they were…The man makes it clear that there were these donations, and to the extent that he says they used vehicles and all that. There’s never been a denial that the EFF received funds from VBS,” Mpofu said.
Emphasising that there is no political party that does not receive donations, Mpofu questioned where corruption, fraud, and money laundering are in the case where EFF received donations from VBS