VBS warns that Zuma’s loan default puts him at risk of losing Nkandla home
The bank has warned in court papers that if Zuma failed to settle accumulated arrears amounting to R500,500.00 it will have to attach his Nkandla home which was used as security for the loan.
JOHANNESBURG - There’s still no word from former President Jacob Zuma’s lawyers following a court application against him by liquidators of the VBS Mutual Bank after he defaulted on his loan repayments.
The bank has warned in court papers that if Zuma failed to settle accumulated arrears amounting to R500,500 it will have to attach his Nkandla home which was used as security for the loan.
Zuma acquired a loan of just over R7 million from the now-defunct bank in 2017 to repay money used by the state for non-security upgrades of his Nkandla home.
The court application by the VBS Bank liquidators showed that Zuma was struggling to keep up with the R69,623 repayments on the 20-year loan.
The bank sent Zuma and his lawyers several letters of demand, after which it said he made sporadic repayments with bank statements detailing varying payments of between R30,000 and R70,000 which were less than the agreed monthly instalments in light of his arrears.
The full outstanding amount is R7.3 million, while the total repayment over the agreed period with interest is R9.2 million.
Should Zuma fail to settle the debt, he stands to lose his Nkandla home which was the subject of much controversy under his presidency after the Public Protector found that over R200 million was irregularly spent by the state on the property.
Zuma’s legal team has 20 days to respond to the court application which was filed last Friday.