JOHANNESBURG – With the EFF’s deputy president Floyd Shivambu’s younger brother Brian having been fingered in pocketing R16 million from the embattled VBS Mutual Bank, questions are now raised why the party so vehemently opposed the bank’s curatorship in March.
Below is the full EFF statement released on 11 March 2018:
The Economic Freedom Fighters notes that the South African Reserve Bank intends to put VBS Bank, the only black-owned bank in South Africa under curatorship. VBS is a Mutual Bank that is owned by the Public Investment Corporation (PIC) and black-owned investment company. The EFF believes that placing a bank under curatorship should always be a last resort, something to be done after exhausting different rescue measures and interventions. Opting for curatorship as the first measure undermines the bank and undermines black people’s participation in the ownership and control of financial services institutions.
The known reasons for placing VBS bank under curatorship seems to be the instruction issued by National Treasury to Municipalities, which had deposited money into the bank. Instead of allowing the bank to wind down the Municipalities’ deposits over a period of time, National Treasury issued an instruction, knowing that such an instruction will immediately collapse the bank. It is therefore wrong and unacceptable for Government to engage in activities that seek to undermine and hinder black people’s participation in the financial sector.
The EFF is aware that VBS is being victimised due to a loan it gave to Mr Jacob Zuma for a house in Nkandla. Had it been a white-owned bank that had offered Zuma a loan, they would not be subject to victimisation today. The EFF was the first to question VBS giving Zuma a loan, but we were led to believe, even by the Reserve Bank, that it was above board.