President Jacob Zuma raised the R7.8 million to pay for the upgrades to his Nkandla homestead through a home loan, the presidency said on Monday.
Spokesperson Dr Bongani Ngqulunga said the president had paid over R7 814 155.00 to the South African Reserve Bank as ordered by the Constitutional Court of South Africa in respect of his private homestead at Nkandla.
“The President raised the amount through a home loan obtained from VBS Mutual Bank on its standard terms, one of the few financial institutions which offer home loans in respect of land owned by traditional authorities,” Ngqulunga said.
The Economic Freedom Fighters (EFF) on Monday welcomed President Jacob Zuma’s repayment of R7.8 million to the State for luxuries added to his private home at Nkandla. The party added that it would further look into the circumstances of the loan from VBS Mutual Bank.
“The EFF will also seek further clarity on the main source and principle that led to a mutual bank (VBS Mutual Bank), which is supposed to benefit ordinary people in Vhembe, granting a loan to Mr Zuma,” the party said in a statement.
“We will do so to prevent a possible situation where monies are illegally moved in protection of one individual, whom the Constitutional Court said should be individually and personally liable for the non- security upgrades.”
Because it is not a security upgrade, President Zuma had to pay personally 87,94%. This percentage corresponds to R7 814 155.