Shivambu’s VBS Bank penalty ‘unlikely to dent EFF’s public standing’ ahead of elections

While the parliamentary penalty slapped on Economic Freedom Fighters (EFF) MP Floyd Shivambu over nondisclosure of monies benefited from the VBS Bank, experts yesterday said it was unlikely to lead to an internal fallout or dent the party’s public standing ahead of next year’s general election.

In what has unsettled the EFF – which is planning to mount a court challenge – the joint committee on ethics and members’ interests have found Shivambu to have breached item 10.1.1.1 of the Code of Ethical Conduct and Disclosure of Members’ Interests for National Assembly and Permanent National Council of Provinces Members.

ALSO READ: Lawmakers find EFF’s Shivambu failed to disclose VBS bank payments

Shivambu failed to comply with the requirement for MPs to disclose financial interests. This in respect of the R180 000 paid to him in 2017 by Sgameka Pty Ltd – a company owned by his brother Brian Shivambu.

Emerging unscathed in the probe was EFF leader Julius Malema. The committee found he didn’t breach the parliamentary code.

EFF not affected

While lauding the investigation, independent political analyst Sandile Swana and policy expert Dr Nkosikhulule Nyembezi, conceded that the Shivambu finding was unlikely to dent the party’s public standing or lead to an internal party fallout.

ALSO READ: Shivambu heads to court over ‘undisclosed R180k VBS payment’

“It should be acknowledged that the investigation was diligent and of much higher quality compared to that of acting public protector advocate Kholeka Gcaleka on the Phala Phala scandal,” said Swana.

“The ANC was the one that initially played a prominent role in opening the doors for the looting of the VBS Bank, under the Zuma-Ramaphosa presidency, with money being funnelled into VBS and taken out.

“The ANC are heavily implicated in undermining municipalities and a viable successful black bank – a bank where poor black depositors invested their money. But the epitome of the VBS success was undermined by the greed of the elite – led by the EFF and the ANC.

“The fact that Shivambu’s brother was heavily implicated and that there were financial transactions, was something already known before the announcement by parliament.”

Swana added that it was worrying whether the EFF will become clear on where it stands on financial irregularities and corruption.

“If it claims to be the proper replacement of the ANC, it cannot display the same characteristics as the ANC in financial recklessness.”

ALSO READ: Sars liquidates Brian Shivambu’s Grand Azania, over R11.5m unpaid tax

Describing the committee report as “a significant step towards ensuring accountability of politicians”, Nyembezi said: “It is conceivable that the party leadership has all along been aware of the transactions and has taken a position on how to handle the matter in the interest of the party.

“Hopefully, the legal appeal process on the grounds that these were loan transactions, will be conducted and finalised speedily.”

Shivambu outcomes welcomed

While supporting the parliamentary outcome, the DA and ActionSA hoped law enforcement agencies would take the VBS saga further.

“Shivambu’s failure to declare monies received through VBS casts doubt on all public statements he has made about this matter,” said DA chief whip Siviwe Gwarube.

ALSO READ: VBS loan recipients ordered to pay back R100m, plus interest

“While this comes as cold comfort to those who lost their life’s savings in the VBS heist, it is a step in the right direction by parliament.”

ActionSA Limpopo chair Sello Lediga said: “While we would have liked to see parliament mete out a harsher sanction, we are encouraged that the criminal proceedings will do just that.”