EFF bank fraud scandal reminds world that SA is corrupt

EDINBURGH — The bank scandal that has thrust the Economic Freedom Fighters (EFF) into the headlines might be welcome news to those who would like to see the EFF disappear – but it is a reminder that corruption is deeply embedded in South Africa. The EFF is a small party ordinarily of little interest to global decision-makers, yet its role in the collapse of VBS Bank has attracted the attention of respected global business newspaper The Financial Times. This is perhaps because Julius Malema is seen as a powerful threat to the ruling ANC; at the very least, EFF policies have influenced the recent behaviour of ANC leaders who have, for example, embraced land grabs. – Jackie Cameron 

By Thulasizwe Sithole

Just as South Africa is recovering from the Zuma-Gupta state capture scandal, a new corruption scandal has thrust the country into the international limelight.

"Investigators in South Africa have uncovered new links between the radical opposition Economic Freedom Fighters party and a high-profile bank fraud, deepening a national scandal over the fallen lender's alleged financing of political corruption," says the Financial Times.

"A forensic report released last month into the collapse of VBS bank detailed how management of the 'rotten to the core' lender had falsified accounts and bribed local officials to rapidly grow its deposit base. The investigation also implicated relatives of EFF leader, Julius Malema, and his deputy in suspicious transfers of money from the lender.

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