A Johannesburg High Court judgment has ordered former VhaVenda king Toni Mphephu, his nephew Oscar Thobakgale and the Dzata Trust to repay R17.29-million linked to the VBS Mutual Bank scandal. The 2 March ruling by Judge Johann Gautschi found the payments from Vele Investments to be dispositions without value. Respondents failed to demonstrate any value received by the bank in return.
Liquidators in the VBS Mutual Bank liquidation sued Toni Mphephu, Oscar Thobakgale and the Dzata Trust over more than R17-million paid by Vele Investments. The High Court in Johannesburg ruled on 2 March that these were dispositions without value, as no evidence showed what the bank received in exchange. Mphephu admitted receiving R300,000 monthly from Vele Investments for which no value was expected.
Respondents argued the payments related to uluvha, a customary practice of gifting to traditional leaders. The court rejected this defence, noting Vele Investments is a juristic person unable to engage in such cultural practices. Payments involved cash transfers, bond settlements and fees, not property gifts under custom.
Judge Gautschi ordered specific repayments: Mphephu personally liable for R4.4-million across 57 payments; Dzata Trust for over R8-million; Thobakgale for R2.99-million in attorney fees; and both jointly liable for R1.7-million unexplained funds from an attorney's trust account.
The judgment signals a shift in clawback cases, placing the burden on recipients to prove value provided. Courts now demand detailed financial records over bare denials.
VBS victims, including elderly depositors known as gogos, face limited recovery. The South African Reserve Bank covered deposits up to R100,000, but larger claims depend on partial clawbacks. Victim Elisa Mudau said in 2024: “Whether he [Tshifiwa Matodzi] gets 15 or 25 years, it makes no difference… We just want our money.”
