It's been revealed that VBS Mutual Bank gifted former president Jacob Zuma an R8.5 million bond at least nine months before any documents were signed to give the bank security over the loan.
News 24 investigative journalist Kyle Cowan reported that Zuma was granted the loan despite the fact that he could not afford it.
Zuma used the VBS bond in September 2016 to pay back a portion of the money used for “security upgrades” to his Nkandla home after he was instructed to do so by the Constitutional Court.
It's reported that the mortgage facility given to Zuma by the VBS will be investigated the Hawks and the NPA.
In 2016, Zuma needed a loan to be able to repay the money that was used for nonsecurity upgrades on his Nkandla home. According to a statement released by the Presidency at the time, He paid an amount of R7,814,155.00 to the SA Reserve Bank in September of that year, as had been recommended by the public protector.
The full cost of the loan was projected to run to R16 million.
According to court papers Zuma started falling behind on the repayments in August last year, and only paid sporadically after that.
His arrears are now worth well over half a million rand, claims the liquidator, and Rooplal has now called up the entire arrears amount of R7.3 million.
Zuma can still file notice of whether he will defend the summons, but only has until Saturday to do so.