By Naadiya Adams

The South African Revenue Service (SARS) is demanding R28.2-million in taxes from two companies owned solely by Brian Shivambu, Economic Freedom Fighters’ Floyd Shivambu’s brother. This huge amount includes penalties as Brian attempted to evade paying tax for the periods 2017, 2018 and 2019. 

Shivambu swindled VBS Mutual Bank out of almost R16-million according to findings by SARS auditors and investigators. He “committed a criminal offense” by not declaring his taxes, investigators say Shivambu acted in a way that is regarded as “intentional tax evasion”.

When he was contacted by SARS auditors and investigators he was very evasive. The documents revealed in a court process show intricate details of Floyd Shivambu’s bank account which link him to being a direct benefactor of VBS Mutual Bank. 

In an interview with Radios Islam the Daily Maverick’s Pauli Van Wyk who has been tracking the story for months, says Shivambu has now been directly linked to the scandal

“Its very clear that VBS money funded the political aspirations and lifestyles of Julius Malema and Floyd Shivambu. All indications were that, that was so because we could see their lifestyles, their political aspirations and their income didn’t match,” says Van Wyk.

For the first time, on the basis of SARS documents uploaded to an open court, it came to light during a liquidation process the details of Floyd Shivambu’s Private Wealth account held at FNB. According to Van Wyk it was very clear that Shivambu received VBS funds into that account.

The money was traced from VBS Mutual bank straight to two front companies owned by Brian and then straight into Shivambu’s bank account.

“Money that could be beyond reasonable doubt, definitively traced was around R1,8 million and if you look at the pattern over months of payments beyond the bank statements that we had, it was if it could have been even more, around R4,5 million,” says Van Wyk.

Van Wyk says SARS confirmed that at least R2 million rand of VBS funds trickled into EFF bank accounts, however with regard to Malema the revenue service has not made public any details directly implicating him in the scandal. Van Wyk says she has managed to pick up traces that say he was a recipient.

“I could trace money towards a house that Malema owned and rented before, I could trace money to his wife and children, I could trace money towards his own lifestyle and I traced his bank account movement from the front that he used to support his lifestyle,” says Van Wyk.

She literally traced his movements as he boasted his life on social media and his business bank account that he used as a front was rolling his extravagant lifestyle.

“The bank card of his front followed him around the country to all sorts if places including Seshehu his home town, including to the Durban July as well as Cape Town, Bloemfontein and Johannesburg,” explains Van Wyk.

She says there are clear indications that Julius Malema benefitted from VBS Mutual Bank funds. Van Wyk also explains that Brian Shivambu is just the tip of the iceberg, and while there has been no indication that Malema will be pursued the evidence is there and it is only a matter of time.