Former King of Vha – Venda nation Toni Mphephu Ramabulana, who was ousted from his throne a year ago, was ordered this week to repay 5.6 million rand plus interest to VBS Mutual Bank. He lost the case with costs.
On Tuesday this week, Judge Makume of the Johannesburg High Court ordered Toni Mphephu Ramabulana to repay the money for three luxury cars he received from VBS Mutual Bank.
The judgment states that “the evidence and Mphephu’s version are teeming with contradictions and inconsistencies and have completely distorted reality”, the legal arguments are “weak” and his version of events at one point “is so outlandish and legally untenable. “that it “requires no further consideration”.
Mphephu was ordered to repay VBS three amounts totaling R5.6 million calculated at 10.25%, 11.58% and 12.50% interest for a Range Rover 5.0 V8, a BMW 760i Sedan and a Mercedes -Benz V250d.
Mphephu pleaded poverty and if he told the truth it will be difficult to get the money back.
What does it talk about?
In a region where “position” equals power equals (taxpayer’s) money equals social position, Toni Mphephu Ramabulana was perfectly on the verge of illegally benefiting from the money from the VBS Mutual Bank.
He was the Venda King, a powerful position in the northern part of South Africa – not only over its citizens, but in local municipalities and parts of government structures.
In 2015, for example, Mphephu received a tax-free salary of R1.1 million a year from the government because he was the “king”.
Tshifhiwa Matodzi, a chartered accountant and disgraced CEO of VBS, accused of robbing the bank into insolvency, saw the gap. Matodzi’s game plan was to recruit people in positions of power to redirect public and private money to VBS – be it King Mphephu, government officials strategically placed to help his scam, or politicians who could provide a cover. In a simple exercise in ‘money makes money’, Matodzi piled on these agents monetary and physical ‘gifts’ worth millions of rand – all disguised as ‘loans’ which were never meant be reimbursed. In return, Mphephu backed VBS openly, supporting the perception that the bank was a safe bet while allegedly relying on city authorities to pump more money into the bank.
But when you steal more than you reinvest – as Matodzi and the VBS management team did – the bottom will eventually fall. It took them less than three years from the date Matodzi was appointed Chairman of the Board of VBS to bankrupt the bank. In March 2018, the game was finished.
The Reserve Bank has instituted a wide-ranging and sensational investigation by attorney Terry Motau and law firm Werksmans and appointed Anoosh Rooplal of SNG Grant Thornton as liquidator.
How will Mphephu refund the money?
It’s not clear.
Almost exactly a year ago, the Constitutional Court denied Mphephu’s request for leave to appeal against a judgment that overturned the decision to appoint him King of the Traditional Council of Vhavenda.
This after Princess VhaVenda Royal Family Masindi Clementine Mphephu petitioned the Thohoyandou High Court in 2012 to reconsider and reverse the decision to identify and recognize Mphephu Ramabulana as King VhaVenda. She further requested an ordinance declaring that she is the sole queen of Vhavenda, in terms of common law. The dispute is not yet finalized.
In line with the Constitutional Court ruling, the Department of Cooperative Government, Human Settlements and Traditional Affairs said Mphephu would be deprived of his salary and benefits.
