‘No evidence’ Malema received money from VBS

Parliament was investigating Malema following a complaint by DA leader John Steenhuisen alleging that he breached the code as it relates to the Venda Mutual Bank scandal.

The complaint was based on an article by the Daily Maverick published in September 2019.

The article alleged that Malema benefited from VBS funds through Mahuna Investments, did not disclose the benefit in his 2017 and 2018 declaration of interests, and used the life savings of vulnerable VBS depositors and municipalities to fund his extravagant lifestyle, business interests and political aspirations.

The committee’s co-chairperson, Bekizwe Nkosi, says the committee resolved to summon the liquidator in the VBS matter to furnish it with a report on the movement of money in the VBS scandal.

"The report was presented to the committee on 23 August 2021. In terms of the report, Sgameka Projects paid R4 803 180 into an ABSA bank account belonging to Mahuna Investments.

“The Sgameka account was identified by the liquidator as the account into which money from the VBS was paid and then transferred out into other bank accounts held by both natural and juristic persons.

“In terms of the report, the member (Malema) did not hold a bank account with the VBS. The report also indicates that no money was transferred from the Sgameka bank account to the member. There is no reference in the report to any account held by the member that may implicate him in the VBS scandal," he said.

Nkosi said the committee also wanted to summon the Financial Intelligence Centre (FIC) to obtain financial intelligence on whether Malema received money through Mahuna’s ABSA bank account. 

"The FIC held the view that in terms of section 40 of the Financial Intelligence Centre Act, No 38 of 2001, it would be unlawful for it to provide the committee with financial intelligence. 

“The committee was in the process of invoking section 14 of the Powers, Privileges and Immunities of Parliament and Provincial Legislatures Act, 4 of 2004 against the FIC, but after receiving legal advice, did not proceed with issuing the summons.

“The committee noted that section 40 of the Financial Intelligence Centre Act prevented the committee from pursuing the allegations further. To this end, the committee’s investigation is inconclusive as the committee was not in possession of sufficient information to make a finding. The committee decided to close the file in the matter," said Nkosi.

Although the committee was unable to reach a finding on Malema, his deputy, Floyd Shivambu, was found to have breached the conduct for failing to disclose three payments from Sgameka Projects.

The committee recommended that Shivambu's salary be docked nine days’ income as a sanction.

*The article has been updated to reflect the fact that the committee was unable to make a finding regarding a possible breach of the Code of Ethical Conduct and Disclosure of Members’ Interests on Julius Malema. The article erroneously stated he was found not guilty. 

ALSO READ