A little known Sandton-based VBS Mutual Bank, the financial institution which this week made it to the news when it loaned President Jacob Zuma a whopping R7.8-million to settle debt for his Nkandla homestead's non-security upgrades, is not giving out any information relating to their deal with the president.
The bank's chief executive Andile Ramavhunga today cited a client confidentiality clause as a reason for not disclosing details around the deal they had entered with Zuma.
In a statement issued out this morning, Ramavhunga said, "like any other responsible financial institution, VBS would not release any information about the business dealings of its clients under any circumstances".
He added that: "As a responsible corporate citizen, the bank abides by regulations pertaining to the privacy of customer information”.
The bank has been little known across South Africa until this week when it was revealed that they had loaned Zuma the money to settle his part of the debt for the Nkandla upgrades. However, Ramavhunga who said the bank was established in 1982, said the business of VBS was focused specifically on traditional communities who own land.
"Home loans are granted to individuals, partnerships, trusts, closed corporations, private companies or prospective owners who wish to buy, improve or build their own fixed residential property. Like any financial institution the bank lends to qualifying individuals only," he said.
Zuma this week paid the R7.8-million debt to the national treasury after he was ordered by the public protector Thuli Madonsela and subsequently by court, to pay for the non-security upgrades in his home which was upgraded to the tune of more than R240-million by the state a few years ago.
Ramavhunga said VBS Mutual Bank acted within the confines of its banking licence terms and conditions when it loaned Zuma the money "and in all its other dealings".
Bank mum about loan to Zuma for Nkandla debt
The bank's chief executive Andile Ramavhunga today cited a client confidentiality clause as a reason for not disclosing details around the deal they had entered with Zuma.
In a statement issued out this morning, Ramavhunga said, "like any other responsible financial institution, VBS would not release any information about the business dealings of its clients under any circumstances".
He added that: "As a responsible corporate citizen, the bank abides by regulations pertaining to the privacy of customer information”.
The bank has been little known across South Africa until this week when it was revealed that they had loaned Zuma the money to settle his part of the debt for the Nkandla upgrades. However, Ramavhunga who said the bank was established in 1982, said the business of VBS was focused specifically on traditional communities who own land.
"Home loans are granted to individuals, partnerships, trusts, closed corporations, private companies or prospective owners who wish to buy, improve or build their own fixed residential property. Like any financial institution the bank lends to qualifying individuals only," he said.
Zuma this week paid the R7.8-million debt to the national treasury after he was ordered by the public protector Thuli Madonsela and subsequently by court, to pay for the non-security upgrades in his home which was upgraded to the tune of more than R240-million by the state a few years ago.
Ramavhunga said VBS Mutual Bank acted within the confines of its banking licence terms and conditions when it loaned Zuma the money "and in all its other dealings".
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