Zuma's Nkandla loan: Bank's shareholders under scrutiny

The VBS Mutual Bank website lists the Public Investment Corporation as the majority shareholder.

Picture: EWN.

PRETORIA - The shareholder details of the little-known bank which has given President Jacob Zuma a R7.8 million loan have come under scrutiny after it emerged he settled his Nkandla debt.

The Presidency confirmed yesterday, that Zuma has obtained a loan from VBS Mutual Bank because it's one of the few financial institutions which offer loans in respect of land owned by traditional authorities.

In March the Constitutional Court found 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 for the upgrades to his home.

The VBS Mutual Bank website lists the Public Investment Corporation as the majority shareholder while just over 25% of the company is owned by the Dyambeu Investments.

That company is led by Vha Venda King Toni Mphephu Ramabulani whom the president accorded kingship status in 2012 but is being challenged by a Ramabulani's niece.

The Economic Freedom Fighters' Fana Mokoena says they will be investigating this further.

"The connection with the PIC is the most worrying part because it means that government money may be channelled into some corrupt scheme and this is the problem we are having."

LISTEN: Zuma pays back the money.

The African National Congress has not commented on this latest development.