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Unexpected Financial Boom Fuels Controversy About Brian Shivambu's Link with Failed VBS Mutual Bank

Published September 21, 2023
9 months ago

Earlier this year, Brian Shivambu, a sibling of EFF deputy president Floyd Shivambu, found himself in a financial crisis. His company, Sgameka Projects, owed VBS Mutual Bank R4.4 million. This sum was separate from another R16 million that circulated through other Sgameka and VBS accounts.

In January, during the crux of his financial hardships, Brian pleaded for an extended repayment plan from VBS liquidator, Anoosh Rooplal. His proposal involved an unusually small monthly repayment of R5 000 — significantly less than the mortgage interest and the initial terms that called for upwards of R190 000 per month. However, Rooplal rejected this proposal and sought to liquidate Sgameka.

During these strenuous times, Brian's cousin (Musa Shibambu) became his savior by stepping in with a substantial R180 000 bailout, which assisted Brian in keeping up with his mortgage repayments. Despite this lifeline, previous allegations about Brian's involvement in the VBS scandal continued to make the headlines.

In a surprising turn of events, Brian miraculously resurfaced from his financial turmoil by settling the remaining balance of R1.7 million for the mortgage in September. With another unexpected payment, this time of R340 000, Brian reduced the loan account to R1.3 million. These sudden payments led Brian to assert that "Sgameka was solvent and should not be liquidated." Despite Brian's claims, controversial questions about the source of these funds have arisen, with some critics suggesting third party involvement.

The court's judgement on Sgameka's liquidation is still reserved, casting a shadow of doubt on the legitimacy of Brian's sudden wealth, deepening the controversy around his relationship with the collapsed VBS Mutual Bank.

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