EFF leader in trouble, accused of links to bank fraud

The deputy leader of the Economic Freedom Fighter EFF Floyd Shivambu’s brother Brian Shivambu has been allegedly linked to the bank fraud of close to R2 billion of municipal and tax payers money looted, leading to the crisis experienced by VBS Mutual Bank.

The major opposition party, Democratic Alliance DA  Kevin Mileham has challenged the EFF to come forward and respond to these allegations levelled against its deputy leader.

Below is the statement by the EFF.

Statement On Forensic Report Outcomes On VBS Mutual Bank

The EFF notes the forensic report released by the South African Reserve Bank which demonstrate how VBS Mutual Bank was defrauded . The report shows that VBS defrauding is possibly the greatest bank heists in South Africa with close to R2 billion of municipal and tax payers money looted.

The EFF reiterateds its position that all who are responsible and illegally benefited from the fraud must be criminally prosecuted immediately. As we have previously indicated, we also reiterate that they must be black listed. Above all,the law enforcement,agencymust do all they can to ensure that all the moneythat can be recovered must be paid back in full, including attaching properties of the individuals who benefited from the defrauding the VBS.

The EFF is concerned by the findings that the banks cannot be saved, shutting down the bank will not help efforts to increase black participation in the financial sector. A recovery plan that can save the bank or  support of other black owned prospective black licence applicants to service the people in the rural areas with PTOs must be deviced.

Finally, it is concerning that such looting has been allowed to happen since 2015 and all the much celebrated institutional mechanisms of reporting and monitoring banks by the SARB were not sufficient to prevent the defrauding of VBS. Only upon the bank giving Jacob Zuma a loan did concerns arise and decision to closely loot into its affairs happen.

We call on the SARB to review its ability and mechanism to monitor banks as the failure of the SARB itself to protect ordinary citizens from being scammed by institutions masquerading as banks under its watch.

READ: EFF demands Ramaphosa to sign Party Funding Bill

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There are concerns that the party is yet to respond to the alleged link involving Shivambu.

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