Zuma’s Nkandla Homestead To Be Attached By VBS For Loan Defaults

In September 2016, former president Jacob Zuma signed a multimillion-rand loan agreement with VBS Mutual Bank to cover the court-enforced repayments for upgrades to his Nkandla homestead.

Zuma's Nkandla Homestead To Be Attached By VBS For Loan Defaults-Surge Zirc SA
Jacob Zuma/Photo File: 30sec

The curators of liquidated VBS Mutual Bank have focused on former president Jacob Zuma’s Nkadla residence, as per court papers that were seen by media on Tuesday.

The papers documented at the high court in Pietermaritzburg said Zuma needed to pay back R7.3m on his bond or the liquidators would attach his property.

In September 2016, former president Jacob Zuma signed a multimillion-rand loan agreement with VBS Mutual Bank to cover the court-enforced repayments for upgrades to his Nkandla homestead.

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But less than two years later, Zuma had already defaulted – and three years later, almost to the day, the troubled bank’s liquidators filed court papers to get the former president to pay up on an outstanding R500,000 in arrears, according to court papers filed last week.

Zuma fell behind on the repayments without precedent for August 2018, when he was financially past due of R109,568. A letter of interest was sent to Zuma. “Subsequent to the delivery of the demand letter, the first defendant [Zuma] effected sporadic repayments, all of which were less than the agreed monthly installments.”

The court papers at that point detailed endeavors between May 6 and June 18, 2019, to make extra installments. However, “the first defendant has failed to effect payment of the full arrears”.

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The court papers, recorded by VBS Mutual Bank’s liquidator, Anoosh Rooplal, demonstrate that Zuma has until September 14 to file a notice to state whether or not he will defend the summons. Should he defend it, he would have 20 days after that to record reacting papers.

As indicated by the court papers, as of August 31, 2019, Zuma is R558,691 financially past due on his VBS loan and owes a sum of R7,345,849.

Zuma’s representative Vukile Mathabela revealed to the media that he had reached the previous president’s legal team over the court papers to avoid Nkadla being snatched from the former president.

“I’ve called the attorneys and I’m waiting for them to come back to me. They will know what’s going on,” he said, promising that he would make a statement once he had a response from the lawyers.

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