Floyd Shivambu used VBS 'slush funds' to pay for his lifestyle - report

2019-10-14 08:55
Floyd Shivambu. (Lucky Nxumalo, file)

Floyd Shivambu. (Lucky Nxumalo, file)

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EFF deputy leader Floyd Shivambu was the directing hand behind two companies managed by his brother, using money stolen from the now collapsed VBS Mutual Bank to fund his lifestyle, according to a report.

In a report released by the SA Reserve Bank last year, his brother Brian or his companies were said to have received about R16m from VBS.

READ | Floyd Shivambu admits VBS money used to buy Range Rover - report

The Daily Maverick's Scorpio investigation unit found that Floyd was the main beneficiary of Sgameka Projects Pty Ltd and Grand Azania Pty Ltd (companies managed by his brother), using more than R12.26m from VBS as slush fund money and receiving a further R8.74m in the Grand Azania account from 15 "highly questionable sources".

Analysing transactions from the accounts between 2016 and 2018, and point of sale payments, the investigation uncovered that the bank card linked to Grand Azania followed Shivambu around southern Africa and was used to pay for various lifestyle expenses.

These reportedly included: Shopping sprees at Sandton City and the V&A Waterfront, a trip for Floyd's birthday in Zambia, his wedding expenses, Range Rover, groceries and other flight and hotel expenses.


Shivambu previously told the Mail & Guardian that Sgameka Projects had transferred R680 000 to a Sandton dealership to make up a shortfall after he traded in his 2013 Range Rover model for a new one.

The payment was apparently part of his brother's purchase of one of his old cars, a 2012 BMW 7 Series.

After initially denying the Range Rover was bought with VBS money, Shivambu told the publication that the money was clean because his brother had paid back two loans totalling more than R4m.

Following the report, he tweeted a Whatsapp conversation with the journalist, with the caption: "Admitted where?"

The Shivambu brothers have denied any wrongdoing.

News24 reported last week that the DA would report Shivambu to Parliament's ethics committee over the allegations of money being used to pay for his wedding in 2017. 

The Daily Maverick's report and DA chief whip John Steenhuisen in his statement said they could not find any declarations of these payments in Parliament's registers for 2017 and 2018.

News24 also consulted the registers, and could not find the declarations.

Shivambu denied any wrongdoing and instead accused Daily Maverick reporter Pauli van Wyk of using state funds for her wedding. Van Wyk is unmarried.

"The money reportedly looted from VBS in this manner represents the life savings and retirement nest eggs of ordinary South Africans, and especially that of thousands of the inhabitants of Limpopo's poverty-stricken rural areas. These are the very people that the EFF and Shivambu claim to represent," said Steenhuisen at the time.

"Even if Shivambu had declared the money he is alleged to have received for his wedding expenses, the DA maintains that he would still be in breach of the code of conduct, which requires MPs, among other things, to always act in a manner that maintains public confidence and trust in the integrity of Parliament.

"It also requires that members adhere to values such as integrity, openness and honesty. Shivambu's reported actions clearly betrays the trust of thousands of voters who believed that the EFF cares about them."

- Compiled by Jenna Etheridge

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

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