KEY POINTS
- The VBS Bank trial faces delays due to appeals on trial separation.
- The defense demands additional documents, escalating legal disputes.
- A new accused wants a separate trial in Limpopo, adding to complications.
It has been nearly seven years since the VBS Mutual Bank fraud scandal erupted, yet the main trial against 13 accused remains stalled.
Legal wrangling has thrown another wrench into the case, with the State and defense battling over a court ruling that ordered a separation of trials for two high-profile accused, former ANC Youth League leader Kabelo Matsepe and former provincial ANC treasurer Danny Msiza.
On Monday, during a hearing at the Gauteng High Court in Pretoria, prosecutor Hein van der Merwe made it clear that the State is not backing down.
The prosecution is taking the matter to the Supreme Court of Appeal (SCA) after Judge Peter Mabuse ruled in favor of separating Matsepe and Msiza’s trial from the rest of the accused. The ruling has been a blow to the prosecution’s efforts to try all 13 accused together.
Van der Merwe revealed that the State had previously reserved five legal questions for the SCA to consider, but Judge Mabuse denied the request.
Now, the prosecution is bypassing the judge and directly petitioning the SCA to appeal the decision. Until the appeal is decided, the main trial remains on hold, raising concerns about whether it will even commence this year.
Defense insists on more evidence before proceeding
Meanwhile, Matsepe and Msiza’s defense, led by Advocate Shaun Abrahams, is also taking legal action.
The two accused are challenging Judge Mabuse’s decision to deny them access to additional documents related to the investigation led by Advocate Terry Motau SC.
While the prosecution handed over the case docket after their arrests, the defense argues that critical documents are still missing.
Abrahams contends that his clients are entitled to more evidence before facing trial. The SCA first denied appeal permissions before requesting the court to review their decision.
If the SCA denies their request again, Abrahams has indicated that they are prepared to escalate the case to the Constitutional Court.
On the other hand, the prosecution maintains that the defense has all the necessary materials.
Van der Merwe argued that the case against the accused relies on witness statements and other evidence.
He emphasized that it is not based solely on the Motau investigation. He insisted that there is no legal obligation to provide additional documents beyond what has already been disclosed.
More accused may seek separate trials
As the legal tug-of-war continues, another accused has signaled their intention to request a separate trial.
Their counsel argued that they are based in Limpopo. They claimed that they should be tried in their home province instead of Pretoria. If granted, this could further complicate and delay proceedings.
Multiple appeals and potential Constitutional Court challenges are in play. Uncertainty looms over when—or if—the VBS Bank trial will begin. Judge Mabuse has postponed the case to August 18, when the court will assess the next steps.
The VBS Mutual Bank scandal rocked South Africa after an investigation exposed large-scale looting. The looting amounted to nearly R2 billion ($108.3 million).
The collapse of the bank devastated municipalities, pensioners, and other depositors who lost their savings. Several suspects face charges, but justice remains elusive as legal delays continue to mount.
