- Brian Shivambu, brother of EFF Deputy-President Floyd Shivambu, is facing the fallout for failing to pay R4.2 million back to VBS
- Brian, along with his company, Sgameka Projects, had taken out loans and mortgages from the now-defunct bank
- Liquidators have summoned Shivambu after he failed to honour payment arrangements for the amounts owing
Brian Shivambu is being sued over R4.2 million in unpaid mortgages and loans taken out at VBS Mutual Bank.
The liquidators of the bank are suing the brother of Floyd Shivambu and have asked that his company, Sgameka Projects, is placed under liquidation for breach of contract:
"We requested the sheriff of the court to serve Shivambu immediately. He has five court days to respond as to whether he will accept the application or oppose it. Then he has another 15 days to file an opposing affidavit."
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Briefly.co.za reported in 2018 that Shivambu had used a R1.46 million loan in order to buy a home for his parents in Gauteng. His parents have since vacated the premises.
The liquidators explained that Shivambu is being sued for the loan amounts plus interest. With demands for payment having been ignored by Shivambu, Sgameka Projects has not only breached the loan agreement, but is now deemed factually insolvent.
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According to TimesLIVE, Shivambu had denied any involvement with VBS and had claimed that Sgameka Projects had no relationship with the bank.
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