Who Owns VBS Mutual Bank
Who Owns VBS Mutual Bank, On Monday, the Presidency announced that Zuma had complied with the Constitutional Court ruling to pay back some of the money that was used for upgrades at his home in Nkandla.
“President Zuma has paid over the amount of R7 814 155.00 to the South African Reserve Bank as ordered by the Constitutional Court of South Africa in respect of his private homestead at Nkandla,” a statement from the Presidency said.
Zuma was able to make the payment after he received a home loan from VBS Bank, a Broad-based Black Economic Empowerment (BBBEE) company and specialist finance and retail bank established in 1982.
Before the bank was named VBS bank, it operated as the Venda Building Society. The bank received a permanent Mutual Bank License on 11 October 2000, according to its website.
Its shareholders include the Public Investment Corporation (PIC), which owns 25%, Dyambeu, which has a 26% stake in the company, 48% is owned by shareholders whose names have not been mentioned on the bank’s website, and 1% is staff incentive.
The company’s board directors are:
Questions have been raised regarding the terms and conditions of the loan and the criteria followed by the bank to give Zuma the loan. According to the Presidency’s statement, Zuma will be paying the institution R80 000 monthly over a 20-year period.
Experts have also called on Zuma to be transparent about how he will pay back the bank and where he will be getting the funds from.
The Democratic Alliance has asked for proof that Zuma has indeed paid back the money, saying: “In this regard, it is important that the President provides proof to the National Assembly, which he is accountable to, that he personally paid the R7.8 million, and that the VBS Mutual Bank is not a front. The President has a history of tapping into his circle of cronies for funds.”
Zuma was ordered in March by the Constitutional Court to pay back a portion of the money that was used to pay for upgrades to his private home in Nkandla.
This was after the court found that Zuma violated his oath and should have complied with recommendations made by the public protector.
Zuma is expected to answer oral questions in the National Assembly on Tuesday.