Zuma took out loan to pay Nkandla debt

The Presidency says President Zuma obtained a loan from VBS Mutual Bank to settle the R7.8m debt.

President Jacob Zuma. Picture: GCIS.

JOHANNESBURG - The Presidency says President Jacob Zuma took out a loan from a bank in order to settle his R7.8 million debt owed for the non-security upgrades to his Nkandla home.

In March the Constitutional Court found that the president failed to uphold, defend and respect the Constitution after he ignored the Public Protector's recommendations that he pay back some of the money spent on upgrading his homestead.

The presidency says President Zuma obtained a loan from VBS Mutual Bank.

It says it's one of the few financial institutions that offer loans in respect of land owned by traditional authorities.

The company, formally operated as the Venda Building Society, has its head offices and a branch in Johannesburg, and three other branches in Limpopo.

Taxpayer money had been used to build non-security features at Zuma's Nkandla home, which included a swimming pool, ampitheatre, chicken run and cattle enclosure.

Treasury has confirmed that the money was paid into its revenue fund.


While the Democratic Alliance (DA) has welcomed confirmation that President Jacob Zuma has paid back the money for non-security upgrades to his Nkandla home - it's now demanding that he present proof that he's obtained a bank loan, as claimed, to settle the debt.

The DA's Mabine Seabe says Zuma must now account to the National Assembly.

"We are asking the president to give proof to Parliament for this loan. In previous instances the President has gotten assistance from his circle of cronies to pay back money that he has owed."

The African National Congress could not be reached for comment, while the Economic Freedom Fighters says it will issue a statement this evening.

Read the Presidency statement on the matter.

Take a look at EWN's special feature on Nkandla.