MBABANE – A serving Eswatini government official has been drawn into the widening money trail surrounding South Africa’s VBS Mutual Bank scandal, after a new investigative book revealed a payment allegedly made to a company linked to former Economic Freedom Fighters (EFF) deputy president Floyd Shivambu.
The VBS Mutual Bank scandal was a massive R2 billion financial heist in South Africa. Bank executives and corrupt politicians systematically looted the institution by bribing municipal officials in impoverished municipalities to unlawfully deposit public funds. The fraud resulted in the bank’s insolvency and liquidation in late 2018.
Former VBS chairperson Tshifhiwa Matodzi was convicted as the mastermind of the “bank heist” and sentenced to 15 years in prison. Former CFO Phillip Truter pleaded guilty in a plea bargain, was sentenced, and has since been released on parole.
The book, Banking Bombshell, which examines the collapse of VBS Mutual Bank and follows the movement of funds identified in forensic investigations, states that Grand Azania received a R300 000 payment from an individual known to this publication but withheld for ethical reasons.
The authors identify the individual as a businesswoman who later became an Eswatini government official. The payment was made during the period when Grand Azania, a company associated with Shivambu, was receiving millions of rand from various individuals and entities linked to the VBS network.
According to the book, Grand Azania received about R15.6 million between November 2016 and August 2018. The funds came from several sources, including companies connected to Brian Shivambu, businessman Lawrence Mulaudzi, and the Eswatini lawmaker.
The publication further details that Grand Azania later made several payments associated with Floyd Shivambu’s traditional wedding, including payments for event services, photography, accommodation and entertainment.
However, the book does not allege that the Eswatini official was involved in the looting of VBS Mutual Bank, nor does it state that the payment was made using funds obtained illegally. The purpose of the R300 000 transaction is not explained in the publication.
The VBS Mutual Bank scandal emerged in 2018 after the bank was placed under curatorship following investigations that uncovered widespread fraud and the alleged diversion of billions of rand. The Motau Report, commissioned by the South African Reserve Bank, identified several individuals and entities allegedly involved in the scheme.
The revelation comes as questions continue to be raised over financial dealings involving politically exposed persons and individuals who later assumed public office.
Independent News has contacted the government official for comment on the allegations contained in Banking Bombshell. No response had been received at the time of publication.
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