EXPLAINER | What the VBS report says about re-instated ANC members Danny Msiza, Florence Radzilani


Limpopo Premier Stanley Mathabatha pleaded for his deputy Florence Radzilani and treasurer-general Danny Msiza to return during a meeting of the ANC NEC this weekend.

Limpopo Premier Stanley Mathabatha pleaded for his deputy Florence Radzilani and treasurer-general Danny Msiza to return during a meeting of the ANC NEC this weekend.

  • The ANC over the weekend decided to reinstate Limpopo treasurer Danny Msiza and deputy chairperson Florence Radzilani who were implicated in the looting in the VBS report.  
  • ANC secretary general Ace Magashule said the party cannot suspend people forever, and called on law enforcement agencies to take action. 
  • Here is what the VBS report said about Msiza and Radzilani. 

The African National Congress (ANC) over the past weekend decided to reinstate two ANC Limpopo leaders implicated in alleged corruption at VBS Mutual Bank.

During a virtual National Executive Committee (NEC) meeting, the ANC decided to reinstate Limpopo treasurer Danny Msiza and deputy chairperson Florence Radzilani in their positions. 

ANC secretary general Ace Magashule, while addressing media on Wednesday following the NEC’s meeting, said the party cannot suspend people forever.

Magashule said the duo had not been charged with anything after two years, and called on law enforcement agencies to take swift action against the perpetrators who looted the bank.

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The duo were asked to step aside alongside several other ANC mayors in 2018 after the release of the VBS Report in which they are implicated in widespread looting at VBS Mutual Bank. 

The 148-page VBS report, entitled the Great Bank Heist, by advocate Terry Motau and Werksmans Attorneys revealed how its architects and accomplices stole almost R2 billion, leaving the bank cash-strapped, and now liquidated. 

READ HERE | Magashule defends decision to reinstate VBS-linked ANC leaders

Motau was appointed by the Reserve Bank to investigate.  

What does the report say about Danny Msiza? 

Msiza stepped down from his position hours after court papers were filed showing how he personally benefited from wide-scale fraud at VBS Mutual Bank in 2018. 

In a letter addressed to Magashule, Msiza confirms his decision to “step aside” which comes after the party’s integrity committee recommended he should vacate the position.

“I do this not as an admission of guilt on my part on matters relating to VBS, but rather with a clean and clear conscience that there is absolutely nothing untoward I have committed,” Msiza’s resignation letter reads.

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In the VBS report, Msiza was alleged to have used his political influence to convince mayors and municipal officials from at least 10 Limpopo municipalities to invest hundreds of millions of rands in the now collapsed bank.

In the reports, Msiza, who was often referred to as “Bra Danny”, was implicated as being the kingpin in a scheme called “commission agent” where commissioners would receive 2% of what was being paid. 

VBS Mutual Bank CEO Andile Ramavhunga would later admit that the 2%, or a portion thereof, would be used as a bribe to ensure that deposits were made.  

The investments were found unlawful, as municipalities are not permitted to invest with mutual banks. National Treasury also issued an instruction note to municipalities to stop them from investing funds.

Msiza also obtained a questionable mortgage loan from VBS worth R9.5m, in the name of Mojovax – a company of which Msiza and his wife were the sole directors.

What does the report say about Florence Radzilani? 

Florence Radzilani, who was never named in the report, but simply referred to as the “mayor of Vhembe”, also resigned as Vhembe district mayor shortly after the release of the report.

Motau called Radzilani one of the “most illuminating examples of the rampant corruption and bribery that occurred” when she allegedly asked Kabelo Matsepe, who is believed to have been the middle man between municipalities and VBS, for more money. 

ALSO READ | Audit reports show how VBS got its claws into municipalities

Matsepe, who handed over his personal WhatsApp messages relating to VBS to Motau, told former VBS chairperson Tshifhiwa Matodzi on 20 December 2017 in a message: “The Mayor of Vhembe is crying she says we must give her and the speaker a Christmas because they are the ones who are making sure we 45 Investigator’s Report to the Prudential Authority keep that money for six months. We gave her 300k and she cried and said we gave juniors R1.5 million and we give her 300k … We said we will consult with you and will sort her out Friday morning … If we can let’s give her 1% or 2 % on a level of trust because she did keep her promise that she will block the money from being withdrawn.” 

Matodzi approved, but asked how much was Radzilani set to receive. 

Matsepe replied: “If we do the formula we are going to do 2% of R200 for 2 months and thereafter 2% of 150M for 4 months because they withdrew R50M and it will play around R2.3 my thinking is that lets do it half and promise to give her more when she bring back the 50M they withdrew.” 

The Vhembe municipality lost R300 million deposited in VBS.

Radzilani has denied that she has been involved in any VBS municipal investments, and has taken Motau to the High Court in Pretoria, claiming he defamed her in his report. 

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