Question NW2174 to the President of the Republic
11 November 2016 - NW2174
Gqada, Ms T to ask the President of the Republic
(1)Whether, in pursuance of the Constitutional Court Ruling on Nkandla, he obtained a mortgage loan from the VBS Mutual Bank in order to settle the R7,8 million ordered by the court for non-security related upgrades at his private residence at Nkandla in KwaZulu-Natal; if not, what is the position in this regard; if so, (a) on what date did he secure the specified loan from the specified bank, (b) what was the amount of the loan and (c) did he obtain the loan in his name; (2) whether he will furnish Ms T Gqada with a copy of the loan; if not, why not; if so, by what date?
Reply:
I raised the amount R7 814 155.00 through a home loan obtained from VBS Mutual Bank on its standard terms. VBS Mutual Bank is one of the few financial institutions which offer home loans in respect of land owned by traditional authorities.
After paying over the amount of R7 814 155 00 to the South African Reserve Bank, I as a matter of courtesy, advised the Constitutional Court that I have paid the amount as per the order of that court. I deem such notification sufficient and compliant with both the order of court and of my constitutional obligations.