Editorial: So who is paying back the money?
Sadly, given the history of deceit involving Nkandla, a simple announcement that the money had been repaid was never going to rest there
President Jacob Zuma has now paid back the money — the R7.8m he was told by treasury to repay in respect of the irregular expenditure at Nkandla. But far from clarifying matters, it has only raised new questions: specifically, how did he do that?How was it that the VBS Mutual Bank granted a R7.8m loan to a 74-year-old with a patchy financial record, backed by the security of land the bank could never hope to repossess if things went south?For VBS, this loan amounts to 1.1% of its total loans and advances of R694m, so it would be intriguing to see what risk analysis was conducted on the client’s ability, and indeed his willingness, to repay the loan.Who, in fact, makes the decisions at the VBS Mutual Bank? And who owns it?The answers are disturbing: the Public Investment Corp (PIC), which manages assets belonging to government pensioners, owns more than 25% of VBS. It has two representatives, Ernest Nesane and Paul Magula, on VBS’s board. VBS’s risk and compliance committee also incl...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.