Brian Shivambu is indebted to the curators of VBS Mutual Bank because he signed surety for a R4-million business loan in December 2017 in order to start a wine bar in Vilakazi Street, Soweto.
VBS managed to pay R2.1-million towards the wine bar before the bank was put under curatorship in 2018, after being robbed into insolvency.
The South Gauteng High Court delivered an order on 6 August 2019 favouring liquidator Anoosh Rooplal’s request for full repayment of the loan, plus interest and cost.
While at court on 5 August, Shivambu, brother of EFF deputy president Floyd Shivambu, conceded to being indebted and effected a R1-million electronic payment through his attorneys on the day, Rooplal’s spokesperson said. He further conceded an order for the balance – an additional R1.78-million – despite previously indicating that he would oppose Rooplal’s request.
The liquidator argued before the court that Brian was indebted for R2.78-million plus interest at the agreed rate of prime plus 500 basis points calculated from 24 January 2019, as well as legal costs on the scale of attorney and client.
The claim arises from Brian’s “obligations for having stood surety for the debts of Sgameka Projects” to VBS Mutual Bank, Rooplal said in his affidavit before the court.
Brian bound himself, jointly and severally, as surety for and co-principal debtor, jointly and severally, with Sgameka Projects in favour of VBS.
Brian Shivambu is the frontman and slush fund operator for illegal VBS money flowing towards his brother Floyd Shivambu, Julius Malema and the political party they head, the Economic Freedom Fighters.
VBS money was illegally siphoned through various VBS-linked companies and dumped into a company he ostensibly “owns”, named Sgameka Projects.
Sgameka Projects was a slush fund used to funnel money to the EFF, as well as two companies named Grand Azania and Mahuna Investments. These were front companies funding the lifestyle of deputy president of the EFF Floyd Shivambu and president of the EFF Julius Malema.
The R4-million VBS business loan was granted to Sgameka Projects under questionable circumstances, such as that Brian did not qualify for a loan and may have committed fraud in order to acquire the loan.
In quintessential VBS-style, no repercussions were meted out towards this delinquent client.
Note to readers: This is how the R4-million business loan to Brian’s Sgameka Projects fit into the total of R16,1-million in VBS loot adv. Terry Motau and law firm Werksmans traced to Brian Shivambu.
Court documents in the current dispute confirm Scorpio’s investigative piece published in April 2019 which found that neither Brian nor Sgameka Projects serviced the loan according to the agreement.
In his affidavit before court Rooplal confirmed that Sgameka “failed to make payment of monthly instalments… resulting in the accrual of significant arrears due”.
Neither Sgameka Projects nor Brian met the liquidator’s subsequent demands to pay the arrears account, which resulted in these legal proceedings.
The loan seems to have been irregular from the start, Scorpio revealed in April 2019.
To circumvent this problem, Brian (on behalf of Sgameka) ceded an investment account professedly containing R4-million to VBS bank in order to borrow against it.
Except, sources could find no trace of the R4-million.
The investment account seemingly exists, but neither Sgameka nor any other entity has paid the promised R4-million into the investment account, bank statements show.
This may well amount to fraud. This matter should be investigated and aired during criminal court proceedings. The Hawks have been investigating the VBS robbery of R1.89-billion by 53 people and entities since October 2018. No arrests have been forthcoming since. DM