Report details how EFF, Malema profited from VBS looting

EFF leader Julius Malema. File picture: Itumeleng English/African News Agency (ANA)

EFF leader Julius Malema. File picture: Itumeleng English/African News Agency (ANA)

Published Nov 22, 2018

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The EFF, through the family of party leader Julius Malema and his deputy, Floyd Shivambu, received over R1.8-million in illicit VBS funds flowing through front companies, according to a report by the Daily Maverick. 

According to the report, R430 000 was paid towards a luxury Sandown property where Malema once lived. The property has been bought by and registered under the EFF’s name. The report identifies Brian Shivambu, the brother of Floyd Shivambu, and Matsobane Phaleng, Malema’s cousin, as owning companies that operated as fronts for the EFF and Malema. Brian Shivambu is the director of Sgameka Trading Pty Ltd and Phaleng the director of Mahuna Investments Pty Ltd, according to the Daily Maverick. 

The report states that Sgameka and Mahuna were used to funnel some of the VBS funds indirectly to the EFF. Last month the Reserve Bank’s report by Advocate Terry Motau titled “The Great Bank Heist” found that Brian Shivambu received R16.1-million in illicit VBS funds. In his response, Malema denied any wrongdoing and referred questions relating to the property in Sandton to the EFF.

Last month, the EFF held a press conference in the wake of the Reserve Bank report being released with Malema saying that Shivambu showed the party his bank statements from 2014, and they could not find large cash payments made by Brian Shivambu to Floyd.

“I can tell you that in the monies that exchanged hands between Floyd and Brian, and all his relatives, it doesn't come anywhere close to R10m. All I want you to do is give me documents, all I want is you to list payments… that he received this amount on this day,” Malema said.

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