Zuma bank loan probed

The bank that came to the rescue of President Jacob Zuma – by granting him a loan to repay his R7.8 million Nkandla debt – now faces a possible probe from the Financial Services Board in South Africa relating to a R136 million loan it is said to have given to a company in which its chairperson and chief operating officer (COO) have an interest.The loan was for a 54% stake in fuel company Afric Oil.A dossier, sent to the board by a whistle-blower – which City Press has also received – reveals that in the last financial year, Venda Building Society (VBS) Mutual Bank allegedly loaned R136 million to Vele Investments, a company in which the bank’s chairperson, Tshifhiwa Matodzi, and its COO, Robert Madzonga, have undeclared interests. According to the whistle-blower, Matodzi and Madzonga did not declare their interests in Vele to VBS, and the loan to their company was not approved by the bank’s board. On Friday the Financial Services Board’s (FSB) spokesperson, Tembisa Marele, said: “The matter was received through the whistle-blowing system and 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.”City Press understands the matter has also been brought to the attention of the SA Reserve Bank. However, the central bank had not responded at the time of going to press. The Reserve Bank and FSB have regulatory oversight in the banking and financial services sectors, with the former having direct powers over banks. The dossier paints a picture of an open season at the bank, with banking executives flouting lending and recruitment policies and regulations, and using depositors’ money to finance birthday bashes. However, VBS has denied giving a loan to Vele.Suspicious intentThe dossier bears the name of Dyambeu Investments, which holds a 26% stake in VBS.Among others, Dyambeu is co-owned by construction magnate David Mabilu and vhaVenda King Mphephu Ramabulana.Mabilu refused to comment and Ramabulana’s spokesman spokesperson said the king would not speak on matters related to the bank.The little known VBS shot to national prominence six weeks ago when City Press revealed that it was processing a loan application from Zuma for the R7.8 million he needs to pay for the Nkandla security upgrades.VBS’ decision to finance Zuma’s debt came two weeks after the courts barred the president from crowning Ramabulana as King. This followed a court application by Ramabulana’s niece, Princess Masindi Mphephu, to stop the coronation.Masindi claims that she is the rightful heir to the throne.The coincidence between the bank’s decision to finance Zuma’s loan and the president’s decision to crown King Ramabulana has raised speculation that the loan is linked to the fights over the vhaVenda dynasty.On Friday Mbulaheni Mphephu, a member of the vhaVenda royal family, told News24 that he questions the

Zuma bank loan probed

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Namibian Sun 2025-04-29

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Zuma bank loan probed

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Namibian Sun 2025-04-29

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