EFF intensifies VBS spat with Nzimande
THE EFF has intensified its fight with SACP boss Blade Nzimande over the VBS Mutual Bank saga.
Yesterday, it emerged that the opposition party, some of whose leaders have been accused of having links with VBS, wrote a letter to Nzimande asking him if the SACP had received a donation for its congress last year.
In the letter, which Independent Media has seen, EFF deputy leader Floyd Shivambu asked if the SACP had received R3 million for its conference.
But the SACP yesterday denied receiving any payment from Vele Investments, the majority shareholder in VBS, for the conference in Joburg.
SACP spokesperson Alex Mashilo said no funds were received from Vele Investments or VBS.
“I have checked with our finance department, and they made it clear to us that we did not receive a cent from Vele Investments or VBS,” said Mashilo.
In the letter, Shivambu said the SACP must come clean on the matter.
“The EFF writes to officially enquire if the SACP received a donation of R3m from Vele Investments or any of its subsidiaries during its 2017 congress which was paid directly to Birchwood Hotel,” the letter reads.
“We ask the Minister to answer honourably and honestly. We also request the minister to expeditiously attend to the matter given its urgency and sensitivity,” it added.
Shivambu’s brother, Brian, is alleged to have secured payments to the tune of R16m from Vele Investments.
The letter by the EFF to Nzimande came after the South African Reserve Bank, the National Treasury, the National Prosecuting Authority and the Hawks briefed MPs yesterday on progress made in the case against those behind the VBS theft.
Advocate Terry Motau, SC, who compiled the report “The Great Bank Heist”, was also present in the meeting in Parliament, where he defended his report.
Limpopo Premier Stan Mathabatha said yesterday that municipal managers and chief financial officers involved had been suspended for their involvement in the saga.
More than 14 municipalities in Limpopo, the North West and Gauteng deposited R1.57 billion with VBS despite a National Treasury instruction that they not do so.
Reserve Bank Deputy Governor Kuben Naidoo told Parliament that it would not be possible to save VBS, noting that the court application for the bank’s liquidation would be heard next week.
The EFF has been pushing for the government to save VBS. But Naidoo told MPs that this would not be possible.
“The problem is that this bank has no money and it cannot sustain itself. Under liquidation, there is a probability it can be saved.
“Our advice is if Advocate Motau has R1 billion, why would he want to start at minus R372 million?” he asked.
Naidoo said if there were people who wanted to buy VBS, they would be able to break even only in 12 years because of the gaping R372m hole that had been left in the bank.