Brian Shivambu. (Photo: Supplied) | The flag of the Fighters for Economic Freedom (EFF). (Photo: Gallo Images / Sharon Seretlo) | EFF deputy head Floyd Shivambu. (Photo: Gallo Images / Laird Forbes)
Brian Shivambu signed a secret contract admitting to receiving 4.55 million Rand in VBS loot for no kosher reason. He promised to return the money. The contract itself and its cloak of secrecy appear to be revealing and damning.
Brian Shivambu’s lawyers insisted on a secrecy clause before their client signed an “IOU” for Rand 4.55 million in favor of Vele Investments, the majority shareholder of VBS Mutual Bank, during the Vele’s insolvency investigation.
Vele and VBS, along with other related companies, set up a unique criminal enterprise under the leadership of bank chairman Tshifhiwa Matodzi with the aim of robbing the bank’s depositors and laundering the proceeds of the scam participants, which amounted to approximately R 2.7 billion. .
In the debt recognition contract, signed on March 23, 2020, Shivambu admits that “there is no underlying basis for the payment of R 4,550,000 and, therefore, the amount of R 4,550,000 must be repaid to Vele Investments ”.
With this, Shivambu admits to having received millions of rand for doing nothing.
His IOU belies years of denial and attempts to legitimize the money coming from three companies linked to VBS, of which Vele was a part, through his company Sgameka Projects into the front companies and the pockets of his brother Floyd Shivambu and Julius. Malema. Some of the VBS loot also funded the EFF.
The IOU between Vele and Shivambu’s Sgameka projects fits into Vele’s liquidation and insolvency investigation in which trustee Richard Pollock attempts to recover the stolen money owed to Vele and, by implication, depositors of VBS Mutual Bank.
The amount of 4.55 million rand claimed by Vele is a slice of the 16.1 million rand which VBS investigators, lawyer Terry Motau and Werksmans, discovered that Shivambu had received “for free”.
Shivambu confirms in the same contract:
“Sgameka hereby accepts and acknowledges that the amount, nature, cause, calculation and enforceability of the debt are not in dispute.”
Shivambu’s admission that he did not do any work in exchange for R4.55 million in VBS loot goes a long way to supporting the findings of Scorpio’s two-year investigation, in that:
a) Shivambu was the veneer of legitimacy for his brother Floyd, the Economic Freedom Fighters (EFF) and his leader, Julius Malema. He used little money for his own needs;
b) Sgameka channeled millions of rand and benefits that Floyd, Malema and the EFF spent on the property, a restaurant in Soweto, their children and families, luxury cars, luxury clothing, vacations, groceries and the EFF’s fourth anniversary party in Umlazi; and
c) The president of the bank Matodzi, accused of orchestrating the fraud at VBS, used the political power of the EFF in exchange for money. Matodzi described Sgameka Projects’ bank account as “extremely strategic” and the money paid as “lobbying fees”.
Scorpio’s findings are based on tons of bank statements, documents, WhatsApp messages, and eyewitness accounts. Malema, the Shivambu brothers and EFF threatened to take legal action, but did not follow the speech.
(EFF executives have also, at the very least, encouraged a massive campaign of disinformation on social media, filled with threats against journalist Scorpio, and have also “banned” Daily Maverick, Scorpion and amaBhungane to report on their public events. However, they did not take the legal route, for obvious reasons. – Editor)
The confidentiality clause under the “confidentiality” section of the contract states that the “nature or content of this agreement” will not be disclosed.
However, the case was recently filed with the Master of the High Court in accordance with legal proceedings in connection with the liquidation of Vele Investments.
Shivambu’s attorney, Victor Nkhwashu, acknowledged receipt of Scorpio’s request for the contract on May 10, but did not answer any of our questions.
Pollock declined to comment, stating that Vele’s insolvency investigation is governed by Sections 417 and 418 of the Companies Act as it is “secret in nature and unfortunately we cannot disclose the details of evidence provided or information obtained ”. Pollock said Shivambu’s lawyers “requested that the recognition be made confidential.”
He further confirmed that the 4.55 million rand Sgameka owed Vele “has been fully repaid. Payments were first made in accordance with the repayment plan and then accelerated. “
Who exactly funded Shivambu is not yet known to Scorpio.
Shivambu’s secret confession was the result of a legal feud in which he suddenly claimed he was unable to speak English and testify in the language.
This was after Judge Brian Southwood, head of Vele’s insolvency investigation, subpoenaed Shivambu in late 2019 to testify as to what he knew.
A transcript of the proceedings shows that Shivambu felt he was being denied the right to testify in Xitsonga, while Southwood believed that Shivambu was unduly delaying the proceedings in a situation where only a “simple” explanation was required.
The most important part, however, is that at the time, Shivambu’s lawyer Nkhwashu was still trying to argue that Sgameka had been legitimately paid 4.55 million rand, based on a contract and of the work done.
Shivambu felt so aggrieved by Southwood’s skepticism about his fluency in English that he asked his lawyers to initiate a challenge against Southwood, based mostly on bias. Before the case could be exposed and decided, Shivambu suddenly changed his mind, based on a legal opinion. On March 23, 2020, he signed the IOU, stating that Sgameka had indeed done nothing to earn the 4.55 million Rand from Vele Investments and that the money would be repaid in installments.
His lawyers then insisted on a confidentiality clause to obscure the whole case.
The R4.55million repayment is the second VBS-related refund that Shivambu has been forced to honor.
The first was a payment of 2.78 million rand, VBS booty that was dumped in Shivambus and Malema’s SOUTH restaurant in Soweto. This amount was the reimbursement of a partial loan, plus interest and legal fees.
To date, 15 people have been arrested for alleged crimes committed in the fraud that caused the implosion of VBS Mutual Bank. The bank’s chief financial officer, Philip Truter, has pleaded guilty. Its management, auditors and lawyers as well as businessmen linked to the ANC be tried on 188 counts theft, fraud, money laundering, corruption, racketeering and breaches of the provisions of the Law on the Prevention of Organized Crime and the Law on the Prevention and Combating of Corruption Activities. DM
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This notice was published: 2021-06-06 20:11:42