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 mutual bank, as part of 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 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.
Recently, 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.