Cape Town - The liquidator of the VBS Mutual Bank has been granted an order by the Johannesburg High Court to recoup R1.78 million from Brian Shivambu for the loan he obtained from the bank.
Brian, who is the younger brother of EFF deputy leader Floyd Shivambu, had obtained a multi-million rand loan from the bank.
He only paid R1m towards the loan, but R1.78m had been outstanding for some time. A total of R2.7m was part of the R4m loan for Brian’s company, Sgameka Projects, which he had obtained from VBS two years ago.
The Mail & Guardian reported on Friday that the liquidator obtained a high court order that Brian must repay the balance of the loan.
VBS collapsed a year ago after it was found to have been allegedly looted by politicians and those who are close to politicians.
In a report released by Advocate Terry Motau, SC it found that the bank had benefitted a network of people, leading to its collapse.
The South African Reserve Bank said the bank could not be saved.
Several municipalities had deposited more than R1.5 billion into the bank despite a warning from the National Treasury that they were not allowed to do so.
The municipalities have lost the money and are now struggling to stay afloat.