Mogajane’s resignation comes amid allegations leveled against him by Tshifhiwa Matodzi, the former chairman of the defunct VBS Mutual Bank who is currently serving a 15-year jail term for his role in the bank’s collapse in 2018.
According to Bloomberg, Mogajane, a former Director-General of the Treasury has denied allegations related to the VBS bank collapse
“Some false allegations have been made by a convicted felon and I categorically deny any wrongdoing, proper processes must be followed. I fully understand the consequences of these allegations. I’m humbly going to step down from all boards that I currently sit on.” he added
The VBS scandal involved a pyramid scheme that defrauded pensioners and financially struggling municipalities of their deposits which resulted in a loss of around R2 billion.
The bank’s owners bribed officials in poor and dysfunctional municipalities to divert their budgets into VBS in exchange for cash and gifts. Essentially, the bank was turned into a corrupt fund for politicians and their associates.
Simelane has since denied the corruption allegations.
