How VBS Mutal Bank ‘bankrolled’ the EFF

In the ongoing fallout from the VBS Mutual Bank scandal, an affidavit by former VBS chair Tshifhiwa Matodzi has directly implicated Julius Malema and Floyd Shivambu of the EFF.

But EFF spokesperson LeighAnn Mathys dismissed the allegations as old news and redirected attention to others allegedly involved.

‘Old news’ – EFF

“Of national importance, we are fighting with everything we have against the white supremacy ANC and DA collusion that is circumventing parliamentary processes to pass the budget,” Mathys added.

Following Matodzi’s sentencing this week to an effective 15- year jail term for his orchestrated looting of the bank, a buried secret from seven years ago surfaced implicating Malema and Shivambu, who were allegedly promised payments from the bank in support of the EFF.

In his affidavit, Matodzi wrote that the EFF had started a campaign to mention VBS in its rallies. He said he decided Malema and the EFF should be approached for VBS to explain how the loan to Jacob Zuma was granted.

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“Gogoro, which was VBS PR consultants, arranged a meeting for me with Julius at the EFF’s penthouse in Sandton around April/May 2017,” he noted.

He met Malema and Shivambu. “I explained VBS’ position and the fact that the EFF’s negative commentary about the VBS/Zuma transaction was damaging VBS’ reputation. I explained that as black brothers, the EFF’s constituencies were VBS’ target market also,” Matodzi wrote.

“I then proposed that VBS donate R5 million immediately once a bank account has been opened at VBS and R1 million per month to the EFF.”

EFF needed funding to renovate EFF restaurant

Matodzi also revealed that “subsequent meetings were held between Julius, Floyd and myself”. He said a notable one was where Malema and Floyd informed him, they needed funding to renovate an EFF restaurant called Grand Azania in Soweto.

“I informed them of a VBS facility for such loans and referred them to David Nthlokwe, then general manager of credit at VBS, to attend to this request. This loan application was made through Sgameka [Projects] and was approved, although I do not know the amount,” he said.

ALSO READ: DA demands answers about Malema and Shivambu’s involvement in VBS scandal

He said that after VBS was placed under curatorship, he met Shivambu and his brother, Brian, several times.

“At one meeting myself, Floyd and Brian agreed to regularise the R5 million plus R1 million monthly donations. It was agreed that we draft a contract between Vele [Investments] and Sgameka for consulting work in petroleum and storage facilities.

“The contract, which we backdated, was drafted by the Shivambu brothers. The signatories were myself representing Vele and Brian representing Sgameka.”

Investigation into leak

The National Prosecuting Authority condemned the unlawful leaking of the affidavit and said it has instructed the director of public prosecutions in Pretoria to work with the Hawks to investigate the leak.

“Those responsible will be dealt with,” it stated.

ALSO READ: NPA and Hawks to probe ex-VBS boss Tshifhiwa Matodzi affidavit leak