Tuesday, September 13, 2016

South Africans Question President On How He Would Repay Giant Loan

Questions have been raised in South Africa about a home loan that was given to President Jacob Zuma by the little-known VBS Bank to pay back the controversial non-security refurbishments to his rural home in Nkandla.

The Presidency issued a statement on Monday, announcing that Mr Zuma has transferred the amount of more than $500,000 (£380,000) to the SA Reserve Bank (SARB). This was ordered by the Constitutional Court at the end of March.

Mr Zuma will repay the loan over the next 20 years.

According to local newspapers, some have questioned how it is that a 74-year-old qualified for a loan, well in excess of his income and whether this was a case for reckless lending.


The wholly black-owned bank is said to have only four branches in the country.

But explaining his choice of financier, the president said it was “one of the few financial institutions, which offer home loans in respect of land owned by traditional authorities”.

Meanwhile South Africa's main opposition, Democratic Alliance had demanded to see the proof of payment.  Gbam!

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