Brian Shivambu ordered to pay R1.78m to VBS liquidators
Brian Shivambu has been ordered by the Johannesburg High Court to pay the liquidators of the now defunct VBS Mutual Bank R1.78m.
This is on top of the R1m paid by Shivambu, who is the EFF’s deputy president Floyd Shivambu’s brother, before the order was granted early in August.
VBS Mutual Bank, based in Thohoyandou, Limpopo, collapsed in 2018 after being fleeced by those entrusted with looking after depositors’ money. Almost R2bn was stolen by the bank’s directors, senior executives and well-connected politicians, according to a forensic investigation compiled by Terry Motau SC and Werksmans Attorneys on behalf of the Prudential Authority — which oversees the financial system in the country.
In the forensic report entitled “VBS — The Great Bank Heist,” Motau described how the R1.8bn fraud took place. The report implicated 53 people, including Shivambu. Millions of rand, some belonging to poor and old depositors, were lost.
The order demanding Shivambu to pay the money, relates to an application earlier this year in which he and his company Sgameka Projects, were sued for R4.2m in unpaid loans and mortgages.
The aim of the applications is to recoup some of the money lost in the VBS Mutual Bank saga.
The R4.2m total includes R2.7m that VBS said Shivambu owed the bank in unpaid loans, plus interest. Shivambu was sued for the R2.7m as he had signed surety for on behalf of Sgameka.
The court order dated August 5 said Shivambu should pay the R1.78m, plus interest, as well as costs on an attorney-client scale.
Liquidator Anoosh Rooplal’s spokesperson said on Friday morning that a R1m payment was made via electronic funds transfer by his lawyers, which was why the order did not ask for the full R2.7m.
The court process in the application against Sgameka is ongoing.