The Venda Society Building (VSB) Mutual Bank stated that they granted President Jacob Zuma the home loan as he was a qualifying individual.
In a statement released by the bank, Chief Executive Officer, Andile Ramavhunga said they adhered to the strict principles of sound corporate governance when they granted Zuma the loan.
“…like any financial institution the bank lends to qualifying individuals only,” said Ramavhunga.
This follow after calls from opposition parties requesting the bank to releases documents to prove that Zuma acquired the loan through good merit.
Ramavhunga said they will not release the requested informantion as they have to abide by the bank’s privacy regulations.
“…like any other responsible financial institution, would not release information about the business dealing of its clients under any circumstances,” said Ramavhunga
“As a responsible corporate citizen, the Bank abides by regulations pertaining to the privacy of customer information,” he added.
On questions of how the bank assisted Zuma as he is not a Venda reside, Ramavhunga said the Bank focuses specifically on traditional communities.
On Monday Zuma paid the full amount for all non security upgrades for his Nkandla homestead, through the assistance from VBS Mutual Bank which is one of the few financial institutions which offer home loans in respect of land owned by traditional authorities.
Following the announcement, Opposition parties questioned on how the bank managed to assist Zuma as he is not from Venda.
Democratic Leader (DA), Mmusi Maimane said he has written to Zuma to request that he produces proof that the correct procedures were followed in order for him to acquire the loan.
“…I have written to President Zuma requesting him to provide proof to the National Assembly, which he is accountable to, of his R7.8 million loan with VBS Mutual Bank. The details I have requested include: The loan application, the loan agreement, including the details of the loan repayment; and any other relevant supporting documentation,” said Maimane.