EFF deputy president Floyd Shivambu. File picture: Henk Kruger/African News Agency (ANA)
EFF deputy president Floyd Shivambu. File picture: Henk Kruger/African News Agency (ANA)

Shivambu never paid 'detailed' attention to brother's business until VBS saga

By Getrude Makhafola Time of article published Oct 16, 2018

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Johannesburg - It was only after the failed VBS Mutual Bank's R1.89 billion looting scandal that Economic Freedom Fighters (EFF) deputy president Floyd Shivambu paid attention to his brother Brian's work for VBS majority shareholder, Vele Investments.

On Tuesday, Shivambu again distanced himself from allegations that he received R10 million from his brother Brian, after the latter was paid R16 million by the bank for doing consultancy work for Vele Investments.

"I got to pay detailed attention to the contractual relationship my younger brother had with Vele Investments, only after this issue came out that he benefited from VBS. I saw in the contract that he was providing consulting and advisory services on the non-banking assets of Vele. Vele owns other companies apart from a holding in VBS, and all those assets were acquired during the process of advisory services that are said to have taken place. There was nothing to disclose about that," Shivambu said at a press conference.

He said the EFF interference on the VBS matter was to push the SA Reserve Bank to take over curatorship of the bank, recapitalise it and make sure clients' deposits were safe. It was not meant to protect the VBS shareholders, he said.

"There has never been a R10 million that came into my account. The misinformation is deliberate and part of the propaganda machinery...its pure insanity. Its madness...be a patriot and go to the police station and report with evidence that Floyd received R10 million from VBS...there can never be such. We never took money from VBS and anyone who thinks so is mad."

He added that his bank would have asked him about the R10 million because regulations places the responsibility on banks to query unexplained monies being deposited into accounts.

Party leader Julius Malema said the deputy president showed the party his bank statements from 2014, and they could not find the cash payments. He asked the Daily Maverick journalist to provide proof that such a payment was made to his deputy.

"I can tell you that in the monies that exchanged hands between Floyd and Brian, and all his relatives, it doesn't come anywhere close to R10m. All I want you to do is give me documents, all I want is you to list payments...that he received this amount on this day. We will show that to him [Floyd] and he will have to come and explain....and he has a right to refuse to do so, because the honours is on us to prove. In the calculations we made, we never received the millions and that is what troubles me..where does the amount of R10m come from?" he asked.

Shivambu said his brother, who is an EFF member, was 30 years old. In a press release last week, Brian said his company Sgameka Projects provided "professional consulting services" to Vele in 2017.  

He said his company did not have a business relationship with VBS, nor did it receive money from the bank.

* Read more on the #VBSBankHeist here.

African News Agency (ANA)

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