South African Bank That Granted President Zuma Loan In Fresh Hot Water


The Financial Services Board is currently carrying out an investigation in relation to an R136 million loan given to a company – Vele Investments by the VBS Mutual Bank.

The VBS Mutual Bank came to light weeks ago when reports revealed that it was handling a loan application from Zuma for Nkandla’s R7.8m repayment.

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BuzzSouthAfrica learnt that the bank’s trouble began after a whistle blower disclosed that its chairperson; Tshifhiwa Matodzi and chief operating officer (COO) Robert Madzong; own an undisclosed share in Vele Investment company – the beneficiary of the R136m loan.

Report had it that the loan was for a 54% stake in fuel company Afric Oil; as contained in a dossier sent to the Financial Services Board by the whistle blower.

In addition, the whistle blower accused bank executives of contravening lending and recruitment policies and regulations; and using depositors’ money to sponsor birthday parties.

Confirming the development on Friday, the Financial Services Board’s (FSB) spokesperson; Tembisa Marele, said the board received the  matter through the whistle-blowing system.

“It will be processed like any other whistle-blowing matter. At the end of this process, a determination will be made as to whether the Financial Services Board has any jurisdiction to investigate the matter,” Marele added.

Meanwhile, the financial institution has denied all the allegations.

Last week, concerns about the liquidity of the lesser-known bank made rounds in the country; after the bank granted President Jacob Zuma loan for Nkandla repayment.

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VBS Mutual Bank has been in operation since 1982, and is one of the financial institutions which offer home loans in respect of land owned by traditional authorities.

The bank currently has four branches in Limpopo’s Thohoyandou‚ Sibasa‚ Makhado and in Rivonia, Johannesburg.

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