South Africa: SARS Asks High Court to Sequestrate VBS Fixer Kabelo Matsepe

analysis

Court documents filed by the South African Revenue Service's Criminal and Illicit Economy Activities division in their sequestration case against VBS Mutual Bank fixer-cum-businessman Kabelo Matsepe reveal that the taxman traced millions of undeclared rands, including 'commissions' from the bank, right into Matsepe's pocket.

SARS now wants what it is owed: an eye-watering R61-million in tax.

But SARS also has its eye on another prize: a deep dive into widespread malfeasance at the bank - a door opened to it by provisions in the Insolvency Act. In this way, rumours of Matsepe's powerful backers may be further aired and tested.

Matsepe is the Limpopo businessman linked to Danny Msiza who received R35,4-million in gratuitous money allegedly stolen from VBS and from the pockets of vulnerable depositors and municipalities. Matsepe's version is that the money was well-earned "commissions" for linking municipalities to the bank, defined within the parameters of a contract.

To thrash out the facts of how and by whom VBS Bank was looted into insolvency and whether Matsepe's "commission" scheme was legal, Matsepe will answer to the criminal case brought against him and 13 co-accused in the High Court in Pretoria. Matsepe and the bank's managers, auditors, executive directors...

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