Zuma paid back the money, but we’re still curious about VBS Bank

    By
    Dana da Silva
    -

    So what exactly is VBS Mutual Bank?

    Known as the Venda Building Society (VBS), this bank has been around since 1982 and has branches in Sibasa, Thohoyandou‚ Makhado and Johannesburg.

    On its website, it is described as being a wholly black-owned specialist corporate finance and retail bank that is registered with and regulated by the South African Reserve Bank, under banking licence 1051.

    Who owns the bank?

    – 25% is owned by the Public Investment Corporation, which manages government pensions
    – 26% by an entity called Dyambeu Investments
    – 48% of its shares are simply listed as “other”
    – 1% is held by an employee share scheme

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    And the banking business has been good?

    According to The Witness, quoting the South African Reserve Bank, VBS had a total equity and liabilities of around R1 billion by June this year, more than R538 million of which is made up of household deposits, while some R254 million comprises mortgages on homes.

    So how long is it going to take JZ to pay back the (loan) money?

    According to TimesLive, the usual term for a home loan would be over a period of 30 years. This means he would need to pay about R70‚ 000 a month and he currently earns R2.87 million a year.

    PS, Zuma’s 74 years old right now. 

    BTW, what happened to Zuma’s other loan from FNB?

    City Press, who first broke the story of the VBS loan said Zuma must first settle any outstanding balance on his current home loan with FNB before his home can be refinanced.

    And who is in charge at VBS?

    Dyambeu investments is actually under the leadership of soon-to-be-coronated Venda king‚ Khosikhulu Toni Mphephu Ramabulana. Who, if you remember, was recognised by Zuma as the Venda king back in 2012.

    Any smallanyana skeletons in VBS’s closet we should know about?
    Firstly, there’s friction over President Zuma awarding kingship to Khosikhulu Toni Mphephu Ramabulana. A disgruntled group in the royal family has threatened to block the ceremony later this month. According to these detractors, a legal process challenging the kingship has not yet been concluded.

    So there is that.

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    And then, eyebrows were raised when VBS recently bid to take over the management of the Msunduzi Municipality’s almost R1 billion in investments.

    Why the scrutiny over the bank?

    Well, the president’s finances should always be scrutinised – especially with the cloud of allegations of state capture looming over him – and more so, considering this payment comes AFTER he was found to have improperly benefitted from state resources. The tone however, of some of the commentary surrounding VBS has made us wonder if the same things would be said if the president had taken out another loan from FNB instead?

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