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)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

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
NEXT ON NEWS24X

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

 
/News
Traffic Alerts

Jobs in Cape Town [change area]

Jobs in Western Cape region

Cluster Financial Manager

Cape Town
Network Finance
R950 000.00 - R1 000 000.00 Per Year

SQL Reporter

Cape Town
Communicate Cape Town IT
R10 000.00 - R12 000.00 Per Month

Reporting Accountant

Cape Town
Network Finance Professional / Prudential
R310 000.00 - R360 000.00 Per Year

Property [change area]

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.