Inside the little bank that helped Zuma
The bank’s majority shareholder is the Public Investment Corporation with 25.26%
The little known VBS Mutual Bank that loaned President Jacob Zuma the money to pay back R7.8 million for some upgrades at Nkandla has four branches and managed to post a profit this year after some lean years.In a statement earlier on Monday‚ the presidency said Zuma had raised the money through a home loan obtained from VBS Mutual Bank.While the loan repayment details have not been made public‚ on usual home loan terms over an extended period of 30 years‚ Zuma would be liable for about R70 000 a month. The president earns R2.87-million a year.The bank’s majority shareholders are the Public Investment Corporation (25.26%) — which manages pensions for government employees — and Dyambeu Investments (Pty) Ltd (25.22%). According to VBS Bank website‚ its ownership structure also encompasses a 1.1% staff incentive and 48% by other shareholders who are not disclosed. It posted a net profit of R4.9-million in the latest financial year‚ after a turnaround strategy was implemented following ...
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