ETHICS COMMITTEE FINDS HON SHIVAMBU BREACHED CODE OF CONDUCT ON VBS COMPLAINT
Parliament, Monday, 2 October 2023 – The Joint Committee on Ethics and Members’ Interests has found that Hon Floyd Shivambu MP has breached item 10.1.1.1 of the Code of Ethical Conduct and Disclosure of Members’ Interests for National Assembly and Permanent National Council of Provinces Members for failing to comply with the requirements of the provisions for disclosing financial interest in respect of the R180 000 that was paid to him in 2017 by Sgameka Pty Ltd.
The first complaint was referred to the committee on 16 October 2018 by Mrs Karlsen, a then Member of Parliament. The committee that was constituted under the 6th Parliament resolved during November 2019 to continue with the complaint. On 18 October 2019, Hon John Steenhuisen MP also referred a complaint to the committee. Because the complaint focused on the same issue, the committee processed the two complaints together.
IThe complaint was based on media reports in the Daily Maverick and alleged that:
- The Member received about R10 million through his younger brother Brian Shivambu and that the EFF allegedly received R1.3 million through VBS Bank.
- Money was funnelled through a company called Sgameka Projects (legally owned by Mr Shivambu’s brother Brian Shivambu) into the Member’s bank account.
- Lawrence Mulaudzi made payments into the account of a company called Grand Azania (Pty) Ltd (legally owned by Mr Shivambu’s brother Brian Shivambu) (“Grand Azania”). These funds were then used to pay expenses related to the Member’s wedding.
- the Member benefitted from payments made by the company Sgamaka Projects into Grand Azania’s bank account.
- the Member failed to disclose Sgameka, Grand Azania, Brian Shivambu or Lawrence Mulaudzi in his 2017 and 2018 disclosure of member’s interests.
- the Member used the savings of vulnerable VBS depositors and municipalities funnelled through Sgameka Projects and Grand Azania to fund his extravagant lifestyle and political aspirations.
The committee resolved to summon the liquidator in the VBS matter. The liquidator provided an affidavit in the form of a report to the committee. 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 as follows:
1 18 August 2017: R100 000
2 24 August 2017: R 30 000
3 26 August 2017: R 50 000
The committee will recommend to the House to impose a penalty of a reduction of nine days salary against the Member for breach of breaches item 10.1.1.1 of the code.