Emerging reports making the rounds say President Zuma’s name is not on the deed of the home loan; he allegedly took from the VBS Mutual Bank to offset his Nkandla debt of R7.8 million.
This comes after the VBS Mutual Bank claimed to have lent Zuma the money. But BuzzSouthAfrica learned that no such a bond has been registered in the deeds office in Zuma’s name. This is despite legislation demanding that a home loan must be registered at the deeds office.
The VBS Mutual Bank first came to light some months ago when reports revealed that it was handling a loan application from Zuma for Nkandla’s R7.8m repayment.
In September, the little-known financial institution and the presidency claimed that Zuma financed the repayment of the State R7.8 million for luxuries added to his private home at Nkandla in KwaZuluNatal; through a home loan obtained from VBS Mutual Bank on its standard terms.
Does Zuma’s Missing Name In The Deeds Office Flaw VBS Mutual Bank Claims?
Lending his voice to the issue, an expert on property law at ENS, Andrew Bembridge; asserted that a home loan can only be granted if there is a bond against a deed – whether a title deed or an allocation deed – registered at the deeds office.
However, other speakers who weighed in on the matter believe that it is not worthwhile to meddle or answer questions on the loan because the matter is between the board and President Jacob Zuma.
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.