Floyd Shivambu found guilty of not disclosing VBS payments
EFF deputy president failed to disclose R180,000 from now-defunct bank
02 October 2023 - 20:14
by Linda Ensor
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EFF treasurer-general Omphile Maotwe, deputy president Floyd Shivambu and EFF president Julius Malema at the party's 10th anniversary rally at the FNB Stadium in Johannesburg. Picture: FREDDY MAVUNDA/BUSINESS DAY
Parliament’s joint committee on ethics and members’ interests has found EFF deputy president Floyd Shivambu guilty of breaching the MPs’ code of ethical conduct and disclosure of members interests by failing to disclose the R180,000 of VBS Mutual Bank money he received.
It will recommend to the National Assembly that Shivambu be penalised with the loss of nine days’ salary.
The committee found that R180,000 that was paid to him in 2017 by Sgameka, owned by Shivambu’s brother, Brian Shivambu. The complaint was laid by a former MP and DA leader John Steenhuisen based on media reports by Daily Maverick, which alleged that the EFF, Shivambu and party president Julius Malema had profited from the now-defunct VBS Mutual Bank.
The committee heard evidence from the VBS Mutual Bank liquidator, who reported that R180,000 was transferred in 2017 by Sgameka Projects to Shivambu in three instalments in 2017.
The committee said in a statement on Monday that the liquidator identified that money was moved from Sgameka Projects to other bank accounts held at other retail banks but he did not have jurisdiction to obtain information in respect of bank accounts that were not held with the VBS Mutual Bank and therefore could not furnish the committee with additional information.
“All the investigative avenues used by the committee to try and trace whether more money was paid to the member (Shivambu) via bank accounts to which the liquidator did not have access were unsuccessful. This part of the investigation is therefore inconclusive. The committee decided to finalise the complaint on the evidence that it had before it.”
DA chief whip Siviwe Gwarube welcomed the committee’s finding.
She said the DA laid this complaint first in 2018 and again in 2019 when allegations surfaced that “Shivambu was embroiled in the grand heist of savings of vulnerable depositors at the VBS Mutual Bank Bank”, Gwarube said.
Meanwhile, the committee said in another statement that it was unable to make findings on the allegations of a breach of the ethics code by EFF leader Julius Malema.
The complaint against Malema was made in 2019 by Steenhuisen, who alleged that Malema breached the code as it related to the VBS Mutual Bank scandal, also based on reports by Daily Maverick.
The VBS Mutual Bank liquidator told the committee that the Sgameka account was identified by the liquidator as the account into which money from the VBS Mutual Bank was paid, and then transferred out into other bank accounts held by both natural and juristic persons. He said no money was transferred from the Sgameka bank account to Malema.
“There is no reference in the report (of the liquidator) to any account held by the member (Malema) that may implicate him in the VBS Mutual Bank scandal,” the committee said in a statement.
“The committee’s investigation is inconclusive as the committee was not in possession of sufficient information to make a finding. The committee decided to close the file in the matter.”
In other matters, the committee resolved to recommend various sanctions against four MPs — Portia Mamorobela, Tyotyo James, Nomsa Kubheka and Sibusiso Kula — for their failure to declare their 2022 registrable interests by the due date of November 30 2022.
The committee will recommend to the National Assembly that they be fined to the value of 20 days’ salary and be reprimanded for the breach.
Also, police minister Bheki Cele was found to have breached the code, and the committee will recommend to the National Assembly that he apologise to Action Society director for community safety Ian Cameron for his conduct during a SAPS imbizo in July 2022 when he told Cameron to “shut up”.
Cameron complained that Cele did not behave in the calm and dignified manner required by the high office he holds.
Cameron stated that he was removed from the venue by police officials, his clothing was damaged in the process and his fundamental rights were infringed.
Video footage taken on the day, which was played in the committee, showed that Cele was irate, shouted at Cameron and did not behave, the committee said, “in a manner that would maintain public confidence and trust in the integrity of parliament”.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Floyd Shivambu found guilty of not disclosing VBS payments
EFF deputy president failed to disclose R180,000 from now-defunct bank
Parliament’s joint committee on ethics and members’ interests has found EFF deputy president Floyd Shivambu guilty of breaching the MPs’ code of ethical conduct and disclosure of members interests by failing to disclose the R180,000 of VBS Mutual Bank money he received.
It will recommend to the National Assembly that Shivambu be penalised with the loss of nine days’ salary.
The committee found that R180,000 that was paid to him in 2017 by Sgameka, owned by Shivambu’s brother, Brian Shivambu. The complaint was laid by a former MP and DA leader John Steenhuisen based on media reports by Daily Maverick, which alleged that the EFF, Shivambu and party president Julius Malema had profited from the now-defunct VBS Mutual Bank.
The committee heard evidence from the VBS Mutual Bank liquidator, who reported that R180,000 was transferred in 2017 by Sgameka Projects to Shivambu in three instalments in 2017.
The committee said in a statement on Monday that the liquidator identified that money was moved from Sgameka Projects to other bank accounts held at other retail banks but he did not have jurisdiction to obtain information in respect of bank accounts that were not held with the VBS Mutual Bank and therefore could not furnish the committee with additional information.
“All the investigative avenues used by the committee to try and trace whether more money was paid to the member (Shivambu) via bank accounts to which the liquidator did not have access were unsuccessful. This part of the investigation is therefore inconclusive. The committee decided to finalise the complaint on the evidence that it had before it.”
DA chief whip Siviwe Gwarube welcomed the committee’s finding.
She said the DA laid this complaint first in 2018 and again in 2019 when allegations surfaced that “Shivambu was embroiled in the grand heist of savings of vulnerable depositors at the VBS Mutual Bank Bank”, Gwarube said.
Meanwhile, the committee said in another statement that it was unable to make findings on the allegations of a breach of the ethics code by EFF leader Julius Malema.
The complaint against Malema was made in 2019 by Steenhuisen, who alleged that Malema breached the code as it related to the VBS Mutual Bank scandal, also based on reports by Daily Maverick.
The VBS Mutual Bank liquidator told the committee that the Sgameka account was identified by the liquidator as the account into which money from the VBS Mutual Bank was paid, and then transferred out into other bank accounts held by both natural and juristic persons. He said no money was transferred from the Sgameka bank account to Malema.
“There is no reference in the report (of the liquidator) to any account held by the member (Malema) that may implicate him in the VBS Mutual Bank scandal,” the committee said in a statement.
“The committee’s investigation is inconclusive as the committee was not in possession of sufficient information to make a finding. The committee decided to close the file in the matter.”
In other matters, the committee resolved to recommend various sanctions against four MPs — Portia Mamorobela, Tyotyo James, Nomsa Kubheka and Sibusiso Kula — for their failure to declare their 2022 registrable interests by the due date of November 30 2022.
The committee will recommend to the National Assembly that they be fined to the value of 20 days’ salary and be reprimanded for the breach.
Also, police minister Bheki Cele was found to have breached the code, and the committee will recommend to the National Assembly that he apologise to Action Society director for community safety Ian Cameron for his conduct during a SAPS imbizo in July 2022 when he told Cameron to “shut up”.
Cameron complained that Cele did not behave in the calm and dignified manner required by the high office he holds.
Cameron stated that he was removed from the venue by police officials, his clothing was damaged in the process and his fundamental rights were infringed.
Video footage taken on the day, which was played in the committee, showed that Cele was irate, shouted at Cameron and did not behave, the committee said, “in a manner that would maintain public confidence and trust in the integrity of parliament”.
ensorl@businesslive.co.za
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