VBS Mutual Bank gets attachment order for Zuma’s assets at Nkandla

The High Court in Pietermaritzburg has reportedly granted VBS Mutual Bank curator Anoosh Rooplal an order forcing former president Jacob Zuma to pay back money he spent on Nkandla upgrades in 2011.

This after the former president fell behind on payments for the infamous R7.8 million loan he took out in 2016, from the now liquidated VBS Mutual Bank.

ALSO READ: ‘Dodgy debtor’ Zuma is ‘playing for time’ in paying back the money

Louise Brugman, spokesperson for the bank’s liquidator, Anoosh Rooplal, confirmed to Daily Maverick on Tuesday that the bank had received a default judgment against Zuma.

Rooplal had filed papers in the High Court in Pietermaritzburg, demanding the money from Zuma after he fell behind with his monthly repayments of R70 000.

They wanted an execution order that would allow them to recoup the money owed by possibly selling the property

However, according to the Daily Maverick, the land on which Nkandla is built, Nxamalala Farm, cannot be attached because it is owned by the Ingonyama Trust.

The order does, however, make provision for the attachment and sale of cows, furniture and other assets.

Also Read: Ingonyama Trust still has tight grip of rural KZN land, as SCA yet to hear merits of case

In 2016, Zuma needed a loan in order to repay the money that was used for non-security upgrades on his Nkandla home. According to a statement released by the Presidency at the time, Zuma paid an amount of R7 814 155 to the SA Reserve Bank in September of that year, as had been recommended by the public protector.

A court order had given the president 45 days to repay the money after then public protector Thuli Madonsela found that at least R216 million was spent by the state at Nkandla, and the cost of almost every item had been hugely inflated.

A government team comprising several experts eventually settled on the R7.8 million the president was personally liable for, which opposition parties complained was less than 4% of the amount spent by taxpayers.

The then little-known VBS Mutual Bank was approached by the family to provide the loan. At the time, the Zuma family was claiming they were too poor to pay the R7.8 million for items including a swimming pool, amphitheatre, cattle kraal and chicken run.

The full cost of the loan was projected to run to R16 million.

NOW READ: The legal papers that could see Jacob Zuma losing Nkandla