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Brian Shivambu, the brother of EFF deputy president Floyd Shivambu, has been ordered to pay VBS Mutual Bank's liquidator's legal costs in a case against Brian Shivambu's company, according to a report.
Mail & Guardian on Friday reported that the Gauteng High Court in Johannesburg handed down the ruling on Thursday. The exact amount has not yet been determined.
The case relates to a liquidation application against Sgameka Projects to recover money for unsettled debt.
Last month, Brian Shivambu settled more than R4m in debt for the loan, after pleading with liquidators to decrease his monthly repayments towards the loan. Floyd Shivambu also told the Mail & Guardian last week that money from VBS bank was used to pay for his luxury Range Rover Sport, but insisted that the money was clean.
He told the publication that his brother's company had transferred funds to the tune of R680 000 to a Sandton dealership. He said the money was a cash shortfall after he had traded his 2013 Range Rover for a newer model.
This attracted the attention of the Hawks who are reportedly probing this and other high-end car purchases linked to VBS.
I see the @mailandguardian has written a nonsensical imagination that I admitted that some VBS money bought me a car. I will write to them to demand retraction and will take legal action to once again expose their sponsored agenda. Silence doesn’t mean we can’t fight LIES.
— Floyd Shivambu (@FloydShivambu) September 27, 2019
Last year, the SA Reserve Bank released a report detailing widespread alleged looting at VBS.
One of the individuals named was Brian Shivambu. In the report, it was claimed that he or companies linked to him had received around R16m from VBS, News24 reported.
The Gauteng High Court ordered him to pay back R1.78m to VBS liquidators as part of an application that liquidator Anoosh Rooplal had lodged to recover R2.7m – part of a R4m loan to Sgameka Projects in 2017.
The company paid the capital of a loan and mortgage that was taken with the bank in 2017 and 2016, but still owed the interest, Business Day reported.
- Compiled by Azarrah Karrim
