Biography of Tshifhiwa Matodzi
Quick Facts
| Fact | Detail |
|---|---|
| Full Name | Tshifhiwa Matodzi |
| Date of Birth | Not specified |
| Place of Birth | Thohoyandou, Limpopo |
| Occupation | Former Board Chairperson of VBS Mutual Bank, Executive Chairperson of Vele Investment |
| Education | BCom Accounting Degree (Rand Afrikaans University) |
| Family | Mother: Stephinah Alidzulwi Matodzi; Sisters: Aluwani Matodzi, Shonisani Difotso; Brother: Takalani Matodzi; Ex-Wife: Thabelo Grace Matodzi |
| Notable Roles | Board Chairperson of VBS Mutual Bank, Executive Chairperson of Vele Investment |
| Criminal Charges | Guilty of corruption, theft, fraud, money laundering, racketeering (33 counts) |
| Sentence | 15 years imprisonment (sentences to run concurrently) |
| Bankruptcy | VBS declared insolvent in 2018, defrauding about R2bn |
Early Life and Education
Tshifhiwa Matodzi grew up in Thohoyandou, a town in Limpopo. During his high school years, he assisted his parents in their small general trading shop. This early experience in business saw him selling paper bags and eventually making profits, leading his parents to open a bank account for him to deposit his share of the earnings.
After completing high school, Matodzi pursued a BCom Accounting degree at Rand Afrikaans University. During holidays, he would return home and observe the deterioration of VBS Mutual Bank. This keen observation led him to take an interest in the bank’s shares when they were advertised in a local newspaper in 2012. He inquired about the share subscription and acquired 10,000 shares for R100,000 using his own money, marking his initial involvement with VBS.
Career and VBS Involvement
Tshifhiwa Matodzi’s early involvement with VBS Mutual Bank set the stage for his later roles. He eventually became the Board Chairperson of the bank, as well as the Executive Chairperson of Vele Investment, a company that held significant influence over VBS. Matodzi’s tenure at VBS was marked by significant controversy and scandal.
Family Involvement in VBS
Matodzi’s family also became entangled with VBS. His mother, Stephinah Alidzulwi Matodzi, opened personal and business accounts at the bank. She was listed as a director or trustee of three companies: Africasana, Shimba la Ndou Trust, and Masindi Resort. While she did not control Africasana or Shimba la Ndou Trust, these entities received significant overdrafts and mortgage bonds from VBS. His sister, Aluwani Matodzi, received motor vehicle finance and a home loan between 2016 and 2018. Matodzi’s other sister is Shonisani Difotso who was not implicated.
Matodzi employed his brother, Takalani Matodzi, at Venmont Build Environment, a subsidiary of Vele, in 2015. Takalani’s role involved sourcing land for residential developments, which he then presented to Matodzi for approval and financing. Companies controlled by Matodzi through Vele, in which Takalani held directorships, included Venmont Holdings and Robvet.
In 2017, Matodzi appointed his ex-wife, Thabelo Grace Matodzi, as CEO of a new Vele subsidiary, Venmont Foods. Their divorce was finalized in 2018, with Matodzi paying her a spousal allowance of about R100,000 a month as compensation for her being a housewife and no longer working as a chartered accountant.
The Fall of VBS Mutual Bank
VBS Mutual Bank, originally formed as the Venda Building Society in 1982 and converted to a mutual bank in 1992, had grown to serve around 30,000 depositors with total deposits amounting to R800 million by 2016. However, under Matodzi’s leadership, the bank’s fortunes took a disastrous turn. In 2018, VBS was declared insolvent and bankrupt, with citizens and taxpayers defrauded of about R2 billion. The bank was placed under curatorship, marking one of the most significant financial scandals in South African history.
Criminal Charges and Sentencing
In July 2024, Tshifhiwa Matodzi pleaded guilty in the Pretoria High Court to 33 counts, including corruption, theft, fraud, money laundering, and racketeering, in contravention of the Prevention of Organised Crime Act. He was sentenced to 15 years on each count, but the court ordered the sentences to run concurrently, resulting in an effective 15-year imprisonment term.