Two houses belonging to EFF leader Julius Malema were allegedly funded by the loot from VBS Mutual Bank.

The Sunday Times yesterday revealed that Malema used two trusts funds and an account belonging to an up-market Soweto restaurant to channel money from VBS Bank.

According to the report, funds from Santaclara Trading - which received deposits of over R4m from companies that looted VBS Bank - were immediately channelled to a trust named after Malema's child, Munzhedzi Family Trust, the Mazimbu Investment Trust and SUD restaurant accounts owned by his cousin Tsholo Malema.

These funds are said to have partly funded a plush R5,5m Sandown home as well his R3,3m Polokwane house through a VBS Bank bond applied for by his cousin Jimmy Matlebyane through Santaclara Trading.

The Sunday Times last month also reported that a R3,2m "fraudulent" home loan application to the defunct bank by a company owned by Matlebyane exposed how money from VBS flowed to the EFF or its leader.