VBS: DA challenges Gauteng MEC Jacob Mamabolo’s suitability for office

The Democratic Alliance (DA) in Gauteng has expressed concerns regarding the eligibility of Jacob Mamabolo, the MEC for Cooperative Governance and Traditional Affairs (Cogta) and Infrastructure Development, to hold office due to his alleged involvement in the Venda Building Society (VBS) Mutual Bank scandal.

Last week, an explosive affidavit by the defunct bank’s former chairperson, Tshifhiwa Matodzi, revealed that Mamabolo allegedly asked VBS to pay for a R3 million conference bill that the South African Communist Party (SACP) owed at the Birchwood Hotel in Kempton Park in 2017.

HOW IS JACOB MAMABOLO LINKED TO VBS BANK?

According to Matodiz’s affidavit, the SACP allegedly asked VBS to pay a R3million conference bill that it owed at the Birchwood Hotel in Kempton Park in July 2017 through its then-Gauteng chairperson, Jacob Mamabolo.

Matodzi said that after the news that VBS had granted former president Zuma a R10 million loan, the SACP published a statement through Jacob Mamabolo, who was the Gauteng chairperson at the time.

“The story was alleging that VBS was doing business with Gupta-linked entities called Vardospan and Habib Bank. I then instructed Gogoro Communications to obtain contacts for the relevant SACP individuals. Gogoro arranged a meeting for a meeting with the SACP Gauteng team headed by Mr Jacob Mamabolo and the VBS team led by Andile. I did not attend this meeting. Another meeting was later arranged between Mamabolo and me at a boutique hotel in Groenkloof, Pretoria.

“The meeting was a follow-up on the meeting held with Andile’s team and how the relationship between VBS and SACP could be improved. Another meeting was held between myself and Mamabolo at the Palazzo Hotel in Fourways. At this meeting, discussions were general in nature, and Mamabolo wanted to know more about VBS and how members of SACP could be approached to bank with VBS,” Matodzi explained.

“Around July 2017, I received a call from Mamabolo seeking assistance with the settlement of the SACP conference bill of R3 million at the Birchwood Hotel in Kempton Park.

“On July 6, 2017, the said amount was paid directly to Birchwood Hotel from MML Food Services. There were no further requests received from the SACP regarding payments.” 

SHOULD LESUFI FIRE THE MEC?

DA Gauteng leader Solly Msimanga said if Premier Panyaza Lesufi is committed to ensuring that all MECs appointed to his executive are fit for purpose, he will suspend Mamabolo immediately.

Msimanga said the portfolios overseen by MEC Mamabolo are critical to service delivery, and we cannot have an MEC in that position who has a cloud hanging over his head regarding his dealings with VBS.

He said his party, which moved to the opposition benches after talks collapsed with the ANC over executive positions, will be tabling questions in the Gauteng provincial legislature to determine what steps Premier Lesufi will take against Mamabolo in light of the new allegations that have surfaced.

“The DA will continue to demand that lifestyle audits be conducted on all the MECs and that these reports be made public. This will ensure that our residents receive the service delivery they deserve and that no public funds are lost to corruption,” he added.