Brian Shivambu ordered to pay R1.8m for unpaid VBS loan

 

 

Brian Shivambu, a VBS Mutual Bank beneficiary and brother of Economic Freedom Fighters (EFF) deputy commander-in-chief Floyd Shivambu, has been ordered by the Johannesburg high court to pay R1.78-million to the bank’s liquidators.

The order is in relation to an application by Anoosh Rooplal, the liquidator of the now defunct VBS Mutual Bank, as part of his efforts to recover R2.7-million that was part of a R4-million loan granted to Brian’s company, Sgameka Projects, in late 2017.

The 31-year-old had not serviced the loan and was in arrears of more than R2.7-million, Rooplal said in his court application in the matter. About R1-million of this had been repaid since the court matter started.

Brian did not immediately respond to a request for comment on Thursday evening and a WhatsApp message to his number was read but not responded to.

Rooplal’s spokesperson Louise Brugman said Brian, after paying the R1-million towards the debt, conceded an order for the balance.

In terms of the order, Brian has to pay R 1 785 708.60 plus interest at the rate of prime plus 500 basis points calculated daily and compounded monthly from January 24 2019 to date. He will also have to pay costs on an attorney and client scale.

In his application in April, Rooplal also said the loan agreement — for which Shivambu stood surety — between Sgameka and VBS was signed in December 2017, and Sgameka had undertaken to repay it in 23 installments of R190 637.24 and a final installment of R188 555.37.

“The respondent [Brian] agreed to sign a suretyship in favour of the applicant for all sums and/or monies due or which become due to the applicant [VBS] by Sgameka, and arising out of the loan agreement …

“… Sgameka breached loan agreement in that it failed to make payment of the monthly installments due to the applicants thus resulting in the accrual of significant arrears due and owing to the applicant, and failed and/or neglected to make payments of the amounts due and payable to the applicant, despite demand.”

Brian is one of 53 individuals and entities listed in senior counsel Terry Motau’s The Great Bank Heist, a forensic report commissioned by the Reserve Bank, which details how nearly R2-billion was looted from VBS.

The Mail & Guardian has previously reported that Grand Azania was one of the companies Brian paid part of the R16-million to and that his older brother Floyd sent its banking details to Public Investment Corporation-funded businessman Lawrence Mulaudzi for payment.

Another report said that R5-million made its way to Mahuna Investments, an entity belonging to a cousin of EFF leader, Julius Malema. Another R400 000 went towards the purchase of a R2.7-million townhouse in Fourways, where Brian’s older brother Floyd seemed to have been living.

Earlier this week, the PIC also won its court application to have two of its former executives Paul Magula and Ernest Nesane declared delinquent directors.

This is after it discovered that they, as PIC deployees to VBS’ board, overlooked serious breaches in governance, in return for gratification, and failed to warn the fund which had invested in VBS about the true state of the bank.

Court Order – Brian Shivambu by Mail and Guardian on Scribd

PW Botha wagged his finger and banned us in 1988 but we stood firm. We built a reputation for fearless journalism, then, and now. Through these last 35 years, the Mail & Guardian has always been on the right side of history.

These days, we are on the trail of the merry band of corporates and politicians robbing South Africa of its own potential.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.

Sabelo Skiti

Sabelo Skiti is an investigative journalist.

Advertisting

South Africa has been junked

Treasury says the credit ratings downgrade “could not have come at a worse time”, as country enters a 21-day Covid-19 lockdown with little money saved up

Mail & Guardian needs your help

Our job is to help give you the information we all need to participate in building this country, while holding those in power to account. But now the power to help us keep doing that is in your hands

Press Releases

The online value of executive education in a Covid-19 world

Executive education courses further develop the skills of leaders in the workplace

Sisa Ntshona urges everyone to stay home, and consider travelling later

Sisa Ntshona has urged everyone to limit their movements in line with government’s request

SAB Zenzele’s special AGM postponed until further notice

An arrangement has been announced for shareholders and retailers to receive a 77.5% cash payout

20th Edition of the National Teaching Awards

Teachers are seldom recognised but they are indispensable to the country's education system

Awards affirm the vital work that teachers do

Government is committed to empowering South Africa’s teachers with skills, knowledge and techniques for a changing world

SAB Zenzele special AGM rescheduled to March 25 2020

New voting arrangements are being made to safeguard the health of shareholders

Dimension Data launches Saturday School in PE

The Gauteng Saturday School has produced a number of success stories