The Pietermaritzburg High Court has granted a summary order to the liquidators of VBS Mutual Bank that former President Jacob Zuma must pay R6.5 million, which is outstanding from a R7.8 million loan he took out in 2016.
Zuma took out the loan to pay for non-security related upgrades at his Nkandla home following a report by then Public Protector, Advocate Thuli Madonsela.
The report revealed that there was gross flouting of the legal, financial and administrative processes. The project started at R27 million and ballooned to R215 million and is still incomplete.
Madonsela said because the work was done at the president’s house, deviations were assumed to be justified and not to be questioned.
In terms of the loan, Zuma was supposed to pay R69 000 per month over a 240-month period.
At the beginning of last year, VBS liquidator Anoosh Rooplal demanded R250 000 from Zuma which was in arrears.
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The case was heard behind closed doors due to security reasons.
A civil claim was instituted against Makhanya after the upgrades were found to be excessive.
The Special Investigating Unit’s Special Tribunal spokesperson, Selby Makgotho, says there are a number of claims that are being pursued.
“There are about six claims that are being pursued to the amount of R155 million because as the contract started the budget amount was R27,8 million but when it ended in December 2013 it was R216 million, so the evidence that is being led talks about R155 million which is alleged to have not been budgeted for.”
In the video below Madonsela announces her findings on the over R200-million worth of security upgrades to Zuma’s private residence in Nkandla:
In 2015, United Democratic Movement leader Bantu Holomisa described as embarrassing the Public Protector’s findings that the president benefited improperly from security upgrades at his Nkandla residence.
VIDEO: The Economic Freedom Party (EFF) insisted that Zuma must pay back the money:
