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Floyd Shivambu’s brother implicated in VBS bank heist

According to TimesLIVE, Floyd Shivambu’s brother has been one of the figures fingered in the South African Reserve Bank forensic report on VBS.

Brian Shivambu had apparently received R16 million from the now insolvent institution.

Floyd has refused to answer questions about the money, though the EFF has released a statement calling for those implicated in looting the bank to be prosecuted.

According to the Daily Maverick Floyd Shivambu had tried to kill investigations into the bank, and this is what was part of what motivated his racist attack on Treasury official Ismail Momoniat.

Momoniat was apparently the driving force behind government’s attempts to find out what was going on at the bank.

According to the Daily Maverick’s report a lot of the money Brian got was funneled to his and the EFF.

The Citizen reports that KPMG partner Sipho Malaba knew the bank was R1 billion in the red, but signed off on its financials anyway for a cool R28 million.

Why did he do this?

Malaba apparently had a R11 million overdraft with the bank, as well as a R8 million bond, little of which was paid back.

Lesizwe Trading, his wife’s business, meanwhile had been granted a R2 million overdraft, which was gradually increased to R11 million.

ENCA reports that Provincial Treasurer of the ANC in Limpopo Danny Msiza was named as the kingpin in the heist.

Vhembe Mayor, a senior ANC official in Limpopo, was apparently just one of the figures who took bribes.

Jacob Zuma meanwhile was apparently not implicated according to another report by eNCA.

My Take

What the EFF saying about how Nhlahla Nene should resign should resign under what were similar circumstances?

Floyd Shivambu should resign, just as Nene did. If you’re going to call for a particular standard, you should be willing to apply that standard to yourself.

Of course maybe Floyd didn’t know his brother had gotten this money, it is always possible.

But according to the Mail and Guardian’s report on Siyabonga Nene’s dealings with the PIC, it is unclear if Nhlahla Nene’s son saw a cent out of the PIC.

So we don’t know, and there is a fair chance that Nhlahla didn’t know, that didn’t stop the EFF very publicly going after the lad according to eNCA.

As to KPMG, at this point I don’t think their audit reports are worth the paper they’re written on. They sold out to the Guptas, they stuffed up SARS, and now we see how they signed off on VBS.

I feel a little sorry for the good people who worked there, when they signed on it was a prestigious firm known for, if anything, being a little on the conservative side of auditing. They were a reputable company.

Now I imagine they’re a gap on a lot of CVs, because would you want to be associated with this? Particularly if your business is accounting, and thus involves people trusting you with their money?

I mean, imagine the job interview, “Hey I worked for over a decade at one of the big four auditing firms in South Africa!”

“Which one?”

“…KPMG?”

I can’t imagine that is a great feeling.

  • Edited to update with the Daily Maverick’s report, thanks Derek Wright on Facebook for pointing it out.
  • Picture courtesy of jette55 via Pixabay.
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