Leader of Black First Land First (BLF) Andile Mngxitama has come out in support of President Jacob Zuma and against those who are demanding proof of payment for his Nkandla R7.8 million debt.
He also lashed out at those questioning the authenticity of VBS Mutual Bank, which loaned the president the R7.8 million he needed for his Nkandla homstead.
The self-proclaimed Bikoist took to Twitter to “praise” Zuma for acquiring his loan from a “wholly black-owned specialist corporate finance and retail bank”
The bank has been around for years, but is largely unknown. It works predominantly with rural clients, but has a head office in Johannesburg along with its three branches. The Public Investment Corporation owns a 25% stake in the company, which has raised eyebrows in some circles.
South Africa’s Treasury confirmed on Monday that Zuma had paid back the R7.8 million he owed for nonsecurity upgrades to his homestead in Nkandla. Most leaders of the opposition were surprised by the announcement that Zuma had settled his debt through a loan he had acquired from the Venda-based bank.
Mngxitama argues that the reason the bank is being subjected to suspicious is because it’s black-owned. He calls this “slavery mentality”.
“See today how white-minded opposition parties attack Zuma for using a black-owned bank VBS Mutual Bank,” wrote Mngxitama.
“President Zuma’s vote of confidence in black-owned entities gives me hope. But for that he must expect nothing but criticism,” said the BLF leader, who added that “people criticising assets base of VBS Mutual Bank don’t know that even ABSA doesn’t have assets enough to pay out all depositors at once”.
“The president should be praised for using a small black-owned bank in a county were blacks own nothing.
He added: “Interesting facts about VBS Mutual Bank 1. Assets base as of this year R1 billion. 2. Advanced credit lines in tune of R450 million to AMEs.
“Check this slave mentality. President Zuma expected to assure the rating agencies, not the SA poor and landless.
“In a racist society, anything black is suspect. I praise Zuma for buying black. That’s way to go Msholozi!”