- Zuma took out an R8.5 million home loan from VBS bank for his Nkandla homestead
- He later used the VBS bond to pay back the money that he was found to have spent illegally on Nkandla
- The loan agreement continues, VBS will continue to collect money owed to them
Former President Jacob Zuma will have to continue paying his home loan to the now defunct VBS bank, News24 reports.
The bank gave Zuma an R8.5 million loan, which he could not afford to pay. He used the funds to pay for some of the “security upgrades” to his Nkandla property after the Constitutional Court ruled that he had to pay back the public funds that he spent on unnecessary upgrades to the property.
VBS is going to continue collecting money owed to it, even as it is being liquidated.
News24 also reported that Zuma would not have been able to afford to loan on his salary. The former president received a salary of R2.7 million a year, and the monthly payments would have been at a minimum of R80 000 per month.
VBS mutual bank was liquidated on 13 November, after a number of irregularities, fraud, and mismanagement of funds was uncovered. The Reserve Bank applied for liquidation of VBS, which was approved as the bank was completely insolvent. Briefly.co.za earlier reported on what the outcome of the VBS liquidation would be, and that the bank would be investigated by law enforcement. There are accusations of over R2 billion being stolen from VBS bank, with which many municipalities banked.
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