The VBS–EFF funding trail is one of the most politically explosive elements of the VBS scandal — a documented money trail from a looted community bank to one of South Africa's major opposition parties.

**The Money Trail**

The Motau forensic report and subsequent investigative journalism (particularly by Daily Maverick's Pauli van Wyk) traced a clear financial chain:

1. **VBS Mutual Bank** → **Vele Investments** (controlled by Matodzi) 2. **Vele Investments** → **Sgameka Projects** (owned by Brian Shivambu, Floyd Shivambu's brother) 3. **Sgameka Projects** → **Floyd Shivambu** and allegedly **the EFF**

Brian Shivambu's company Sgameka Projects received R16,148,569 in gratuitous payments from Vele Investments — ostensibly for "consulting services." But Sgameka had no invoices, no employees, and no operating costs. VBS money was its sole source of income.

**The Shivambu Connection**

Investigative reporting alleged approximately R10 million reached Floyd Shivambu personally and approximately R1.3 million went to the EFF. WhatsApp messages from Matodzi's phone (obtained during the investigation) reportedly referenced payments to "Malema and Shivambu's slush funds."

SARS demanded R28.2 million from Brian Shivambu (including penalties and interest). Brian signed an acknowledgement of debt for R4.55 million owed to Vele (March 2020), paid it back by June 2021, admitting he received the money "gratuitously." He later paid an additional R1.5 million.

**The Ethics Finding**

Floyd Shivambu was found guilty by the Joint Committee on Ethics and Members' Interests of failing to disclose a R180,000 payment. He was penalised with the loss of 9 days' salary (October 2023). The EFF consistently denied the allegations, calling the parliamentary ethics findings "proof of nothing."

**No Criminal Charges**

Despite the documented money trail, no criminal charges have been laid against either Floyd or Brian Shivambu. Floyd left the EFF for Jacob Zuma's MK Party in August 2024, becoming its Secretary General.

The absence of criminal charges against the Shivambus — while VBS executives and municipal officials face prosecution — remains one of the unresolved questions of the VBS scandal.