Timing debate: Zuma’s FNB bank account ‘freeze’ raises political eyebrows

On Tuesday, the First National Bank (FNB) confirmed it had halted outgoing payments from former president Jacob Zuma’s bank account.

According to the financial service provider this action was in compliance with a specific order by the High Court (KZN Division). The bank stated that it treats all customers objectively and consistently and declined to comment further on any client’s specific bank accounts due to client confidentiality.

FNB’s response

FNB clarified that the account is not closed because deposits and incoming payments can be made and are unconcerned.

“FNB was instructed by the High Court to place a hold on outgoing payments from President Zuma’s FNB account.

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“This instruction from the court results from the process currently being managed by the VBS Bank liquidators, and FNB was legally required to comply. President Zuma’s recourse now lies with the courts and VBS liquidators,” the bank said.

VBS loan and repayments

Sunday World on 17 March reported that Zuma’s FNB bank account was allegedly the account in which a R7.8 million VBS loan was deposited.

Furthermore, lawyers of VBS curator Anoosh Rooplal ordered Zuma to pay at least R250 000 in repayments on this loan. They threatened to attach his Nkandla compound if he failed to comply.

In 2022 Rooplal had confirmed the bank received a default judgment against Zuma. This was subsequent to his negligence in keeping up with monthly repayments of R70 000.

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At the time VBS had sought an execution order to sell the property and recover the money due. However, ownership of the solid ground where Nkandla stands belonged to Ingonyama Trust, thus preventing loan’s attachment to the property.

Timing and political inquisition

The timing of FNB’s decision to close Zuma’s bank account has raised concerns among political leaders. The politicians shared this weariness due to elections being just a few months away.

Opposition party leaders have questioned the timing, calling it suspicious and raising eyebrows.

APC leader Themba Godi shared his concerns and said “the bank exposes itself to be playing a political game”.

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“The powers that the banks have in our country is enormous and it renders our democratic practice meaningless. If they can do this to a former president who else is at their mercy,” Godi added.

“Only the most gullible among us think that the banks are impartial referees in the game of politics,” said former Pan Africanist Congress (PAC) leader Letlapa Mphahlele.

However, FNB has maintained that its actions were in compliance with a court order and not politically motivated.