The Minister of Finance, Enoch Godongwana, acknowledged the decision by Dondo Mogajane, a trustee and chairperson of the Board at the Government Employees Pension Fund (GEPF), to step down from the position.

“Minister Godongwana extends his gratitude to Mr Mogajane for his service and conveys his best wishes for success in his future endeavours,” he said in a statement on Monday.

Dondo Mogajane has stepped down from all professional roles and the boards that he serves on, effective immediately, including as CEO of the Moti Group and chairperson of the GEPF, following months of public pressure over allegations linking him to the looting of VBS Mutual Bank. Picture: Phando Jikelo/Independent Newspapers

Mogajane was appointed chairperson of the board of the GEPF in July, 2022 after spending 23 years at National Treasury, five of which he served as director-general.

The GEPF is the largest pension fund in Africa with more than R2.3 trillion in assets under its management. It has around 1.2 million active members, and about 500 000 pensioners, and beneficiaries.

Former director-general of National Treasury, Mogajane, has stepped down from all professional roles and the boards that he serves on, effective immediately, including as CEO of the Moti Group and chairperson of the GEPF, following months of public pressure over allegations linking him to the looting of VBS Mutual Bank.

This comes after Godongwana, before tabling the Medium-Term Budget Policy Statement, said he would "deal with “the reputational risk” posed by Mogajane as chairperson of the GEPF.

Mogajane allegedly accepted a R1 million “gratification” when he was director-general of National Treasury from convicted former chairman of VBS Mutual Bank, Tshifhiwa Matodzi, in order to allow the defunct bank to continue taking municipalities deposits in contravention with the law.

Matodzi had claimed that the R1m bribe to Mogajane was to facilitate the withdrawal of the circular issued by National Treasury in August, 2017 warning municipalities that deposits made at a mutual bank contravened municipal finance regulations, and were not allowed.

According to Matodzi, Mogajane had promised to grant VBS a special 18-month dispensation to continue accepting municipal investments, during which it was in the process of getting a commercial banking licence.

These are all statements that Mogajane has labelled as “unfounded and malicious allegations” made by a convicted criminal with questionable motives, saying he believes in the importance of due process and remained confident that, in time, the truth will prevail, and his reputation will be fully restored.

Mogajane has since July 2022 been the chairperson of the GEPF, the largest pension fund in Africa with more than R2.3 trillion in assets under its management with around 1.2 million active members and about 500 000 pensioners and beneficiaries.

He has also been the CEO of the Moti Group since 2022 when he stepped out of the public service after 23 years in government.

Mogajane announced today in a video statement that he was stepping down from his roles, adding that it had been an honour to dedicate the past 30 years of his life to serving the country.

He maintained that he had upheld his commitment to South Africa with unwavering loyalty, dignity, integrity, and, most importantly, humility throughout his career in public service.

“However, I acknowledge the gravity of such claims. It is with a deep sense of responsibility that I have made the decision to step down from all my professional roles and the boards that I have served, effective immediately,” he said.

“I will be taking an extended sabbatical to focus on my personal well-being, spend time with my family and, particularly, my grandson, and reflect on my professional journey. This time will also allow me to explore personal interests I have long deferred.

“While this chapter of my career has drawn to a close, it is not the conclusion of my story. This period marks a pause, not an endpoint. At a later stage, I may decide to possibly re-enter the private sector and, maybe, even politics.”

Four months ago, the GEPF refused to be drawn to comment on whether it would be taking any action against its chairperson Dondo Mogajane after he was implicated in the looting of VBS Mutual Bank.

In an affidavit leaked on Thursday, convicted former chairman of VBS Tshifhiwa Matodzi alleged that Mogajane accepted a R1 million “gratification” when he was director-general of National Treasury in order to allow the defunct bank to continue taking municipalities’ deposits in contravention of the law.

Watch his full statement below:

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