Brian Shivambu has defaulted on VBS loan
The provisional liquidator of the VBS Mutual Bank has approached the courts to recover R2.7m loaned by the bank to cash-strapped businessperson, Brian Shivambu, younger brother of EFF deputy president Floyd Shivambu. A Mail & Guardian report notes the funds are part of a R4m loan facility controversially granted to Shivambu’s company Sgameka Projects by the bank in late 2017.
The 31-year-old has not serviced the loan and is in arrears of more than R2.7m, liquidator Anoosh Rooplal said in his founding affidavit attached to the application.
Rooplal, who was the bank’s curator until he was appointed provisional liquidator when the Gauteng High Court (Pretoria), ordered that it be liquidated in November 2018, said Brian Shivambu had stood as surety. He reportedly told the M&G he had not received any summons regarding his loan with VBS and referred subsequent questions to his lawyer. However, the M&G says it has established that papers in the matter were filed in the Gauteng High court (Johannesburg) on Thursday.
Brian Shivambu was allegedly served on Friday and has five court days to indicate whether he intends to oppose the matter and another 15 days to file an opposing affidavit.
Rooplal said the loan agreement was signed in December 2017 and Sgameka had undertaken to repay it in 23 instalments of R190 637.24 and a final instalment of R188 555.37. He added that since January, Werksmans – the bank’s attorneys – had issued letters of demand for the monies due, and that Brian Shivambu, through his attorneys, made an offer to pay R5 000 a month from March until July, when he would increase the repayments.
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