Question NW69 to the Minister of Finance

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13 March 2019 - NW69

Profile picture: Lees, Mr RA

Lees, Mr RA to ask the Minister of Finance

(1) With reference to the reply to question 2762 on 9 January 2019, what are the relevant details of the reasons why the Public Investment Corporation Social and Ethics Committee considered the matter of a R7,81 million home loan by VBS Mutual Bank (VBS) to the former President of the Republic of South Africa, Mr Jacob G Zuma; (2) whether the Public Investment Corporation (PIC) granted a loan of R7,81 million to the VBS specifically for VBS to lend these funds to Mr Jacob G Zuma; if so, (a) what are the relevant details of the conditions attached by the PIC to the loan and (b) which PIC client made these funds available; (3) whether VBS has met all conditions of the loan, including making all required interest and capital repayments; if not, what (a) are the relevant details of the VBS defaults and (b) action has been taken to recover the loan and interest from VBS; (4) has Mr Jacob G Zuma paid all required interest and capital payments on the loan?

Reply:

(1) The PIC’s Social and Ethics Committee (SEC) has never considered the home loan that VBS Mutual Bank (VBS) granted to former President Zuma. According to media reports, VBS advanced a loan to Mr Zuma in September 2016. The PIC had no knowledge of, nor was it party to, that transaction. In August 2017, the transaction referred to in the reply to Parliamentary Question 2762, was referred to the SEC due to the negative media coverage that followed after VBS granted the home loan to Mr Zuma. The SEC had to assess the reputational risk for the PIC when investing in VBS.

(2) The PIC did not grant any loan to VBS to be used to lend money to former President Zuma.

The rest of the questions fall away.

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