- Brian Shivambu has been ordered to pay the costs involved in the case brought forward by VBS Mutual Bank's liquidators
- A liquidation against Sgameka Projects had attempted to recover funds for unsettled debt
- Shivambu had settled R4 million in debt after previously pleading that he couldn't afford the monthly repayments
Mail & Guardian reported that the exact amount owed has yet to be determined in the case that saw a liquidation application levied against Sgameka Projects.
The application had been launched to recover unsettled debt taken out at the now-defunct bank. Shivambu had settled over R4 million of the debt after asking liquidators to reduce his monthly repayments towards the loan.
Briefly.co.za reported that his brother Floyd Shivambu, EFF deputy president, had reportedly used funding from Sgameka to finance a Range Rover Sport.
R680 000 had allegedly been transferred to a Sandton dealership to cover the shortfall after Floyd upgraded from his 2013 Range Rover, reports News24.
However, the EFF deputy has denied admitting to using VBS funds to purchase the vehicle, sharing a confrontation with a journalist over a report on the matter.
The South Africa Reserve Bank report released detailing alleged looting at VBS noted that companies linked to Brian Shivambu had received around R16 million from the bank.
A High Court ruling had ordered the repayment of R1.78 million to the bank's liquidators, who had sought to recover R2.7 million of a R4 million loan taken out by the company in 2017.
Sgameka had paid the capital lent in a loan and mortgage that had been taken out but the interest on the transaction had still been outstanding according to Business Day.
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