Having been given but a few days to pay back the agreed amount used in refurbishing his home in Nkandla, President Zuma is reportedly settling for an Nkandla home loan from a bank.
Report has it that President Jacob Zuma and his family are trying to get an Nkandla home loan to pay the R7.8 million that Treasury calculated are his outstanding debts for non security upgrades at Nkandla.
According to the report, the family are at the time, negotiating with VBS Mutual Bank after the bank and Zuma’s lawyer Michael Hulley agreed to terms at a meeting in Sandton on Wednesday.
Though the president still has an outstanding loan with FNB which needed to be settled first, the report said the negotiations between the Zuma family and the bank were at an advanced stage.
The family is understood to be very wary about the debt being settled in a quote political way. They have firmly agreed to reject all financial assistance offered by ANC leaders or members. Hence they settled for the Nkandla home loan.
One of the options on the table was for the president to refinance the KwaZulu-Natal property, which has increased in value, owing to the R246 million security upgrades. However the president has maintained not knowing the cost of his home’s upgrade.
The Zuma Family Are too Poor to Pay
The Zuma family had claimed they were too poor to pay the R7.8 million ordered by the apex court and some wealthy businessmen who were expected to come to the president’s aid at this moment, had in the past been declared their unwillingness to help the president saying they did not intend to contribute to an Nkandla fund.
ANC insiders reportedly said that the appetite to help Zuma was now on the wane because he had no prospect of a third term as president and was “on his way out”. His ability to dispense future patronage was therefore in doubt.
The party’s secretary-general Gwade Mantashe further revealed that the party has no intention of helping the president as this was supposedly forbidden by the Constitutional Court.
Added to this, the president’s nephew Khulubuse Zuma who is expected to be of good help at this time, has financial issues of his own after being found personally liable with other directors for R1.5 billion lost at the Aurora gold mine.
Though Zuma’s son Duduzane has shares in companies worth billions through his links with the Zuma-allied Gupta family, but the family has been under fire for several months due to alleged state capture, and no South African banks are willing to service the family’s companies.
The family is hopeful that the Nkandla home loan will be of great help even as the president has until the end of next month to pay up the bill as determined by treasury.