NPA dealt double blow as SCA rejects VBS appeal and Phahlane blue lights case is withdrawn

The National Prosecuting Authority (NPA) faced setbacks in two high-profile corruption matters on Monday, 5 October 2026, with the Supreme Court of Appeal (SCA) shutting down an attempt to challenge the separation of two accused in the VBS Mutual Bank case, while prosecutors provisionally withdrew charges against former acting national police commissioner Khomotso Phahlane and his co-accused.

SCA closes door on VBS challenge

The SCA dismissed the NPA’s application for leave to appeal against a decision allowing former ANC Limpopo treasurer Danny Msiza and former ANC Youth League Limpopo chairperson Kabelo Matsepe to have their trials separated from those of their co-accused in the VBS trial.

Msiza and Matsepe are among 13 people facing charges of fraud, corruption, theft and money laundering arising from the collapse of VBS Mutual Bank and the alleged looting of almost R2.3 billion from the institution.

The case is being heard in the Gauteng High Court in Pretoria and has been before the courts for several years.

Msiza and Matsepe, who were arrested in 2020, argued that the prolonged delays in bringing the matter to finality warranted the separation of their trials.

They relied on Section 157(2) of the Criminal Procedure Act (CPA) in seeking to have their cases heard separately.

The prosecution opposed the separation and sought to challenge the decision through the DPP.

Appeal found to have no reasonable prospects

The NPA first approached the high court in an attempt to have questions of law reserved for consideration by the SCA under Section 319 of the CPA.

That application was rejected in January 2025.

The DPP subsequently took the matter to the SCA, with the appeal being heard in May 2025.

In dismissing the application on Monday, the SCA found that the application failed to meet the threshold required for the reservation of a question of law.

The court also found that there was no reasonable prospect that an appeal would succeed if it were allowed to proceed.

The judgment further pointed out that Msiza and Matsepe had not relied on Section 342A of the CPA, which provides for an inquiry into unreasonable delays in criminal proceedings.

Instead, the accused had pursued the separation of their trials.

“We conclude that the application for leave to appeal must be dismissed.

“First, because the DPP has failed to satisfy the jurisdictional requirement necessary for this court to consider an appeal against the refusal to reserve questions of law in terms of section 319.

“In addition, and in any event, there are no reasonable prospects that, were an appeal to be entertained, it would be upheld.

“There is no merit in any of the questions of law sought to be reserved by the DPP,” the judgment reads.

Phahlane corruption case withdrawn

In a separate development, the Investigating Directorate Against Corruption (Idac), a unit within the NPA, confirmed that charges against Phahlane and several other accused had been provisionally withdrawn in the Palm Ridge Specialised Crimes Court.

The case stems from a 2016 Saps contract involving the supply of emergency warning equipment.

The contract was valued at just over R191 million, with R65 million paid to Instrumentation for Traffic Law Enforcement, the company that was awarded the contract.

The investigation also prevented a further R22 million payment from being made, according to Idac.

Phahlane and his co-accused had been charged with corruption, fraud, theft and money laundering in connection with the contract.

IDAC Provisionally Withdraws the Multi-Million Police Blue Lights Corruption Case Against Phahlane and His Co-Accused pic.twitter.com/Cl0VYGErM9

— NPASouthAfrica (@NPA_Prosecutes)

October 5, 2026

State considers next steps

The decision to withdraw the case follows several delays in the proceedings.

The accused had previously sought to have the matter struck off the roll, but their application was dismissed by the court.

Idac acting head Ntuthuzelo Vanara subsequently decided to provisionally withdraw the matter after considering the circumstances surrounding the case.

The directorate’s spokesperson Henry Mamothame said Vanara would now examine certain aspects of the matter before prosecutors seek to re-enrol it.

The case was also reviewed by a panel established by National Director of Public Prosecutions (NDPP) Andy Mothibi in July.

According to Mamothame, the panel found that the case had been properly authorised and that it fell within Idac’s mandate.

Senior police officials among accused

Phahlane is not the only former senior police official facing charges in the matter.

His co-accused include former deputy national commissioner for human resources management Bonang Mgwenya, former Gauteng police commissioner Deliwe de Lange, Gauteng deputy police commissioner Nombhuruza Lettie Napo, retired divisional commissioner Ramahlapi Johannes Mokwena and retired major-general Ravichandran Pillay.

Also charged are Colonel Thomas Dumas Marima and Sergeant Maetapese Joseph Mulaiwa.

Business figures Judy Rose, Samantha Andrews and Vimpie Manthata, the owner of Instrumentation for Traffic Law Enforcement, are also among the accused.