DA urges Mboweni to act on Venda bank graft
Opposition parties have called on new finance minister Tito Mboweni and President Cyril Ramaphosa to take swift action against those implicated in a forensic report on the failure of VBS Mutual Bank.
Former president Jacob Zuma, the Passenger Rail Agency of SA (Prasa) and Floyd Shivambu’s brother have been implicated in the report, which was released on Wednesday.
The report, by advocate Terry Motau and Werksmans Attorneys, describes how the bank heist occurred and lists a number of former VBS executives and its largest shareholder, Vele Investments, as perpetrators and beneficiaries of the crime.
Included in the 146-page document is testimony from VBS CEO Andile Ramavhunga, who was asked whether a commission of R1.5m had been paid to a group of SA Transport and Allied Workers Union officials to solicit a R1bn deposit from Prasa.
Ramavhunga replies: “It could have been … I know for a fact that we were asked to put money into the Dudu Myeni Foundation.” He said the request for the donation surfaced at the same time they were soliciting the deposit from Prasa.
THE FORENSIC REPORT FINGERS A NUMBER OF FORMER EXECUTIVES OF VBS AND ITS LARGEST SHAREHOLDER, VELE INVESTMENTS
The investigators concluded that Ramavhunga meant to refer to the Jacob G Zuma Foundation, of which Myeni is the chair.
One of the largest benefactors of VBS’s largesse appears to have been Brian Shivambu, the brother of EFF deputy president Floyd Shivambu.
Brian Shivambu received R16.1m from “gratuitous payments” flowing from VBS Mutual Bank. At the time of writing, the EFF and Floyd Shivambu had not responded to requests for comment.
The EFF on Wednesday said it noted the forensic report and reiterated its position that all who are responsible and illegally benefited from the fraud should be immediately prosecuted. It said it was concerned by the findings that the bank could not be saved. “A recovery plan that can save the bank or support of other black owned prospective black license applicants to service the people in the rural area with PTOs must be devised,” it said.
The party made no mention of Shivmabu’s brother Brian.
DA co-operative governance spokesperson Kevin Mileham said the report implied there were more people involved than originally thought, including politicians and officials. “The DA
… calls on the newly appointed minister of finance, Tito Mboweni, to move swiftly with authorities to take action against all those implicated, especially the politicians and those close to politicians, such as Brian Shivambu, who is implicated in the scandal.
UDM president Bantu Holomisa called on Ramaphosa to appoint a task team to ensure those implicated were held responsible, particularly those employed by the Public Investment Corporation (PIC).
“The PIC seems to be sinking deeper and deeper in the quagmire of corruption,” he said. “The UDM wants to see these people charged, and the Asset Forfeiture Unit must not dilly-dally, and get to work.”
In March, the EFF lambasted the Treasury for putting VBS under curatorship and said that the bank was being victimised because it had given Zuma a loan.