The Gauteng High Court (Johannesburg) will hear today from the liquidators of VBS Mutual Bank who are attempting to recover more than R4.2m owed by Brian Shivambu's company Sgameka, and to have it liquidated.

Shivambu, who is the brother of EFF deputy president Floyd Shivambu, owes the bank the money for a loan taken on behalf of his company in 2017 and a mortgage in 2016, according to BusinessLIVE.

VBS liquidator Anoosh Rooplal said in court papers he had brought an application for the winding up of Sgameka 'on the basis of its inability to pay its debt owed' and for 'committing acts of insolvency'.

A forensic report commissioned by the Reserve Bank, published in April, found that Brian Shivambu had received R16m in 'gratuitous payments' from VBS, which formed part of a nearly R2bn alleged looting of the bank, leading to its near-collapse.

It has since been alleged that the EFF, its leader Julius Malema, and his deputy Floyd Shivambu, all vocal critics of the Reserve Bank's handling of the VBS matter, benefited from money embezzled from the bank.

They have, however, denied this.

The bank's liquidators have been working to recover money owed to VBS.

According to Rooplal's court papers in the Sgameka matter, the company owed VBS a little more than R2.7m for the loan and R1.5m for the mortgage.

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