Johannesburg - Soon after forking out R4 million owed to the VBS Mutual Bank to save his company from liquidation, EFF deputy president Floyd Shivambu’s brother Brian now has another debt to settle.
According to the Mail & Guardian, the Johannesburg High Court has ordered Brian’s company, Sgameka Project, to pay legal costs following his court battle with the bank’s liquidators.
The costs, according to the weekly newspaper, emanate from litigation initiated by the bank’s liquidator Anoosh Rooplal in January to recover a R1 580 154 mortgage and a R2 785 781 loan from Sgameka.
However, during the court proceedings, Brian offered to pay monthly installments of R5 000, which was rejected by Rooplal who then proceeded with a process of liquidating the Sgameka. He said Brian’s offer was far less than what he was supposed to pay.
It has been reported that Brian’s lawyers had in August paid R3.5 million for the loan, and in September they paid another R1.6 million. This led to the court ruling that the mortgage credit was no longer relevant for liquidation.
The report said the legal costs were yet to be determined.
It has been reported this week that Floyd, who is the second in charge of the EFF, a party that boasted of exposing corruption, admitted that VBS, which collapsed due to looting, had paid for his Range Rover Sport, but said there was nothing illegal. He told the M&G that Sgameka had transferred R680 000 to a dealership.