EFF leader Julius Malema has escaped sanction by Parliament for allegedly breaching the MPs’ code on declaration of financial interests linked to the liquidated VBS Bank funds.
The joint committee on ethics and members’ interests is, however, set to recommend that his his deputy Floyd Shivambu’s salary be docked for breaching the code.
On Monday, co-chairpersons Bekizwe Nkosi and Lydia Moshodi said the committee resolved that it was unable to make a finding against Malema.
This followed a complaint by DA leader John Steenhuisen in October 2019.
“The complaint was based on a media report in the Daily Maverick dated September 8, 2019, and alleged that the member benefited from VBS funds,” they said. Steenhuisen had complained that Malema benefited through Mahuna Investments.
He claimed Malema did not disclose the benefit in his 2017 and 2018 declaration of interests, among other things.
Nkosi and Moshodi said the committee summoned the VBS liquidator to furnish it with a report on the movement of money in the VBS scandal.
“The report was presented to the committee on August 23, 2021.
“In terms of the report, Sgameka Projects paid R4 803 180 into an Absa bank account belonging to Mahuna Investments.”
They also said the Sgameka account was identified by the liquidator as the account into which money from VBS was paid and then transferred out into other bank accounts.
In terms of the liquidator report, Nkosi and Moshodi said, 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.”
Nkosi and Moshodi said that the committee resolved 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 that it would be unlawful for it to provide the committee with financial intelligence.
The committee did not proceed to issue summons after receiving legal advice.
They said 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.”
Regarding Shivambu, Nkosi and Moshodi said the committee found that he breached the code by failing to disclose financial interest to the tune of R180 000 paid to him by Sgameka in 2017.
“The report highlighted that the following money was transferred from Sgameka Projects (a company owned by Mr Brian Shivambu, the member’s brother) to the member.”
The amounts were: August 18, 2017: R100 000, August 24, 2017: R30 000 and August 26, 2017: R50 000.
“The committee will recommend to the House to impose a penalty of a reduction of nine days salary against the Member for breach of item 10.1.1.1 of the code.”
They said all other investigative avenues to try to trace whether more money was paid to Shivambu via bank accounts the liquidator did not have access to were unsuccessful.
“This part of the investigation is therefore inconclusive. The committee decided to finalise the complaint on the evidence that it had before it,” Nkosi and Moshodi said.
Meanwhile, the committee resolved to recommend that ANC MPs Portia Mamorobela, Tyotyo James, Nomsa Khubheka and Sibusiso Kula have their salaries docked to a fine not equal to 20 days and a reprimand in the House for their failure to declare their 2022 registrable interests.
Cape Times