EFF ignores Shivambu family link in VBS reaction statement

2018-10-10 21:39
Brian Shivambu with his brother Floyd. (Image remix: Facebook/Gallo)

Brian Shivambu with his brother Floyd. (Image remix: Facebook/Gallo)

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The EFF has expressed its concern about a report revealing large-scale fraud at VBS Mutual Bank, but didn't mention a word about the relative of one its leaders, who was named as a participant in a "looting scheme". 

News24 previously reported that Brian Shivambu, the brother of EFF deputy president Floyd Shivambu, received R16m from the now collapsed VBS Mutual Bank.

READ MORE: Floyd Shivambu's brother received R16m from VBS

Brian Shivambu was on a list of 27 people and companies who received the largest amounts of money from the bank in a "looting scheme" totalling R1.8bn.

The list was contained in an investigation report compiled by advocate Terry Motau, titled "The Great Bank Heist".

Explosive report into VBS Mutual Bank reveals large-scale 'looting'

A final investigation report into large-scale fraud at VBS Mutual Bank has recommended that more than 50 individuals be criminally charged and held liable in civil proceedings, following the bank's implosion earlier this year. This includes the bank's former executives and their associates, shareholder executives, politicians and their relatives and auditors who signed off on the bank's "fraudulent" financials.

In a statement on Wednesday night, EFF spokesperson Mbuyiseni Ndlozi noted the report and said action should be taken.

"The EFF reiterates its position that all who are responsible and illegally benefited from the fraud must be criminally prosecuted immediately. As we have previously indicated, we also reiterate that they must be black listed," he said.

"Above all, the law enforcement agency must do all they can to ensure that all the money that can be recovered must be paid back in full, including attaching properties of the individuals who benefited from the defrauding of VBS."

Ndlozi was concerned that the looting had gone unnoticed and appeared to take a dig at the SA Reserve Bank (SARB).

"... it is concerning that such looting has been allowed to happen since 2015 and all the much-celebrated institutional mechanisms of reporting and monitoring banks by the SARB were not sufficient to prevent the defrauding of VBS. Only upon the bank giving Jacob Zuma a loan, did concerns arise and decisions to closely look into its affairs happen.

Elias Shivambu - who is a director in a company called Sunshine Hub alongside Brian Shivambu - confirmed to News24 that he is Brian's and Floyd's father. "Yes [I am their father], but I don't know anything about the R16m."

Informed sources who have knowledge about the investigation into VBS also confirmed that Brian was Floyd's brother.

Motau's report found that there was no prospect of saving VBS Bank because it was "rotten to the core".

Ndlozi said in the statement on Wednesday that they hoped the bank could be saved or that other black-owned prospective black licence applicants could be supported.

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Read more on:    eff  |  vbs bank  |  floyd ­shivambu  |  state capture  |  corruption
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