Brian Shivambu to pay back R4.55m he received from Vele Investments - report

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Brian Shivambu with his brother Floyd. (Images: Facebook/Gallo)
Brian Shivambu with his brother Floyd. (Images: Facebook/Gallo)
  • Brian Shivambu has agreed to pay back Vele Investments R4.55 million.
  • The money was reportedly received for no reason.
  • Shivambu has been linked to the alleged R2-billion looting at VBS Mutual Bank.

Brian Shivambu has signed an acknowledgement of debt of R4.55 million, according to a report by the Daily Maverick, effectively admitting he was paid by Vele Investments for no reason.

Shivambu's attorneys reportedly insisted on secrecy clause as part of the contract signed on 23 March 2020. The contract reportedly states "there is no underlying basis for the payment" and that he will repay Vele Investments more than R4.5 million.

Vele Investments was a majority shareholder in VBS Mutual Bank. Vele and VBS executives allegedly stole more than R1.5 billion from the bank's depositors through fake deposits.

In June 2020, nearly two years after a R2-billion theft of VBS Mutual Bank funds was laid bare, several top VBS insiders, including board members and the chief KPMG auditor for the bank, were arrested in an early morning blitz.

A WhatsApp discussion between former VBS chair Tshifhiwa Matodzi and former VBS treasurer Phophi Mukhodobwane suggests a close relationship between Matodzi and EFF leaders Julius Malema and Floyd Shivambu, an investigation by Scorpio has revealed.

Malema and Floyd Shivambu were reportedly beneficiaries of millions in VBS money paid to Sgameka Projects – a company owned by Brian Shivambu, the EFF deputy's brother.

READ | Brian Shivambu ordered to pay VBS liquidator's legal bill

EFF leaders reportedly spent the funds on property, a Soweto restaurant, their children and family, luxury cars, luxury clothing, holidays, groceries and the EFF's fourth birthday bash in Umlazi.

Matodzi, believed to have orchestrated the fraud at VBS, reportedly utilised the party's political power in exchange for money.

Brian Shivambu has for years denied his involvement in the looting of VBS through his company Sgameka Projects.

EXTRACT | VBS: A dream defrauded

In the acknowledgement of debt between Vele and Shivambu's Sgameka Projects, the secrecy clause reportedly states that the "nature or content of this agreement" will not be disclosed. The contract has since been filed with the High Court.

The payying back of R4.55 million is reportedly the second linked to VBS that Shivambu was forced to honour.

The first was a payment of R2.78 million, VBS loot that was dumped into the Shivambus' and Malema's SUD Restaurant in Soweto.

This amount was payback for a partial loan, plus interest and legal costs.


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