Zuma must still pay back the VBS money

2018-11-27 07:51
Former president Jacob Zuma. (Photo: AFP)

Former president Jacob Zuma. (Photo: AFP)

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Former president Jacob Zuma is still required to honour monthly payments for his home loan at VBS Mutual Bank, Netwerk24 reported.

The scandal-ridden VBS Mutual Bank, which was liquidated on November 13, granted Zuma an R8.5m bond which he could not afford, and it was at least nine months before any documents were signed to give the bank security over the loan.

Zuma used the VBS bond in September 2016 to pay back a portion of the public funds used for "security upgrades" to his Nkandla homestead after he was ordered to do so by the Constitutional Court.

Anoosh Rooplal, who was appointed as VBS's liquidator last week, told Netwerk24 that VBS would continue to collect monies owed to the bank.

The loan agreement for Zuma's bond is reportedly still valid and enforceable.

News24 earlier reported that basic calculations showed that Zuma could not have afforded the bond on his R2.87m a year salary alone.

Using a standard calculation of a 10% interest rate with a zero deposit, Zuma would need to make monthly payments of R180 000 if the bond is over five years, R112 000 over 10 years, R91 000 over 15 years or R82 000 per month over 20 years.

READ: VBS, Jacob Zuma and the 'sham' Nkandla bond he couldn't afford

The former president's money woes don't end here.

Earlier this month, the North Gauteng High Court in Pretoria dismissed Zuma's application for leave to appeal a personal costs order in his attempt to review the Public Protector's state capture remedial action, News24 reported

This means Zuma will now have to personally pay the legal fees incurred in his failed bid to review the Public Protector's state of capture report.

VBS was liquidated after the South African Reserve Bank's Prudential Authority applied for the final liquidation of the mutual bank, Fin24 reported.  

In its affidavit, which went unopposed, the Authority submitted that the order to liquidate the bank was necessary, would be beneficial to the creditors of the bank, and that it was in the interest of the public.

It further submitted that VBS was "hopelessly insolvent", both factually and commercially.

A report by Advocate Terry Motau, titled The great bank heist, was published by the South African Reserve Bank last month. Motau found that the looting of the bank, through the creation of fictitious deposits, totalled more than R2bn.

Among others, EFF president Julius Malema, deputy president Floyd Shivambu and the party itself benefited from the wide-scale looting of VBS Mutual Bank, according to the results of an investigation published by the Daily Maverick

Read more on:    vbs  |  vbs mu­tual bank  |  jacob zuma  |  state capture  |  corruption  |  nkandla upgrades
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