Proof linking South African Communist Party to VBS Looting surfaces

Proof linking South African Communist Party to VBS Looting surfaces

- It's alleged that the R3 million paid to Birchwood Hotel for the SACP Congress came from a subsidiary of VBS Mutual Bank

- However, the SACP spokesman, Alex Mashilo, has denied any links to the looting of the bank

- Mashilo is adamant that action will be taken against those members who are found to be corrupt

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Despite repeatedly denying allegations that the South African Communist Party (SACP) had received funds from shareholders of VBS Mutual Bank - a receipt has surfaced showing otherwise.

Briefly.co.za reported that VBS Bank stood accused of paying the SACP R3 million to keep quiet over the bank’s link to the Guptas. These allegations came from an ex-member who was a senior executive at the party.

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R3 Million was shown being paid into Birchwood Hotel's account the day before the SACP’s national congress was due to start. “We had rendered a service for a conference. Any other thing beyond that is not our interest,” Birchwood Hotel representatives said earlier this week.

READ ALSO: VBS saga: R3 million paid to SACP to keep their silence about Guptas

The proof of payment, shared by City Press, showed MML Food Services paid the amount into the hotel's bank account on behalf of the SACP. MML Food Services is a subsidiary of Vele Investments, which in turn is a majority shareholder in the VBS.

The South African Communist Party National Spokesperson Alex Mashilo maintained that the SACP did not receive funding from VBS, its parent company Vele Investments or any of its subsidiaries.

Mashilo vowed that any officials found to be complicit in corruption would have action taken against them. An SACP official meeting was held to receive legal reports on both the story and the current work being done on the legal aspects of the allegations made against the party.

“They directed that further work, leading to a final report for consideration regarding legal action and/or any further steps that the SACP should consider, must continue and be completed for final decision making. This is the clarification I can give you from the party, pending the outcomes of the process.” Spokesman Mashilo said. “As soon as the party has finalized the considerations it is making regarding legal action and/or any steps that it is considering, there will be an update.”

The chief executive officer of MML Food Services, Ronald Letsoalo denied the company was a subsidiary of VBS or Vele Investments. “We do not have an obligation to confirm or not to confirm whether our company has made donations, as donations made to political parties are normally not disclosed to third parties,” he said.

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Source: Briefly.co.za

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