EFF leader Julius Malema and his deputy, Floyd Shivambu. File picture: Phando Jikelo/African News Agency (ANA)
EFF leader Julius Malema and his deputy, Floyd Shivambu. File picture: Phando Jikelo/African News Agency (ANA)

Malema dismisses allegations of using credit card linked to VBS payments

By Zintle Mahlati Time of article published Jun 25, 2020

Share this article:

EFF leader Julius Malema has denied that he or the EFF have benefited from the alleged looting of the VBS Bank.

Malema told journalists during a roundtable discussion on Thursday that he and his party were not being investigated by the Hawks on the VBS Bank matter.

The EFF and its leadership have been marred by allegations that they had benefited from the looting of VBS Bank since the SA Reserve Bank report was released in 2018.

The report found that over R1 billion was stolen from VBS Bank and paid into various bank accounts of politically connected individuals.

The link to the EFF was connected through an alleged series of payments made to a shell company, Sgameka Projects, run by Brian Shivambu, the brother of EFF deputy president Floyd Shivambu.

Sgameka reportedly received R16 million from VBS Bank, the Daily Maverick reported. The news site alleged that over R5 million of the funds were paid to a company linked to Malema's cousin Matsobane Phaleng's Mahuna Investments. Malema has also been accused of using the funds sent from Sgameka to Mahuna to fund a serious of lavish purchases.

Malema said all these allegations were not true. He said that his cousin was involved in various businesses through Mahana Investments and that those businesses were legitimate.

On whether he benefited from the use of a credit card owned by Mahuna, he denied this claim saying that he may have been present when payments were made but there remains no connection with VBS Bank.

"I would not know he used if he used a VBS card. If I am sitting with him like when we were in Seshego and when I leave they pay. I wouldn't know how they paid. My cousin has never used any money from VBS. 

"The money is from Mahuna not from VBS. Mahuna receives money from various places, not just Sgameka," Malema said.

Political Bureau

Share this article: