Zuma, the ‘dodgy debtor’

PLEA: BANK LIQUIDATOR SAYS FORMER PRESIDENT CANNOT CLAIM POVERTY

Zuma, who receives a pension ofR2m a year, possesses huge assets and must ‘make a plan’.

Jacob Zuma can’t plead poverty when it came to funding his court cases or repaying the multimillion-rand loan he received from VBS Mutual Bank to pay back the state for upgrades at his Nkandla homestead, according to a legal expert.

According to papers filed by VBS liquidator Anoosh Rooplal before the KwaZulu-Natal High Court in Pietermaritzburg, Zuma, who has claimed to be “poor”, has “failed to effect payment of the contemplated and agreed monthly instalments and is in breach of the provisions of the loan agreement”.

Rooplal has convened the second meeting of creditors to take place before the master of the Limpopo High Court in Polokwane on Friday.

“The meeting of creditors will provide an opportunity for all creditors to lodge their claims for proof in the insolvent estate of VBS Mutual Bank,” Rooplal said.

In his reaction, advocate Paul Hoffman, director of Accountability in Southern Africa, said Zuma, who received a R2 million a year in pension, possessed huge assets, which included vehicles and fancy watches – had to “make a plan”.

“He can’t say he is without any means. Also, serving as security, is his Nkandla homestead, which the liquidator wants to sell to recoup monies he owes,” said Hoffman.

On the legal implications of Zuma filing a late notice of intention to defend summons filed by Rooplal, to have him pay back more than R7.3 million, Hoffman said the former head of state was “buying time”.

Said Hoffman: “Like a typical dodgy debtor, he is buying time by not filing his plea timeously. He surely has a plea ready and now the liquidator has to give him more time to file, which could take up to a week’s extension. “Normally, liquidators simply accept an explanation for late filing of a plea and get on with the job. But when no plea is forthcoming within an agreed extended deadline, liquidators simply take the default judgment route and execute.”

Asked for comment on Zuma missing the deadline to file his plea, senior counsel Muzi Sikhakane, who has represented Zuma in most legal matters, including his appearance before Deputy Chief Justice Raymond Zondo at the Commission of Inquiry into State Capture, said: “On this one, I was not briefed.”

In reaction to Zuma’s late filing of his plea, Rooplal said he was “engaging with my legal team on the next steps” between “agreed monthly instalments and is in breach of the provisions of the loan agreement”.

The little-known former VBS Mutual Bank rose to prominence in 2016, when it emerged that it had lent Zuma more than R7 million, meant to pay back the state for the Nkandla upgrades.

This followed former public protector Thuli Madonsela’s ruling that Zuma unduly benefitted from state coffers after uncovering that more than R200 million was paid towards the family home upgrades.

After revelations that directors siphoned R2 billion in a fraud that plundered the bank, which collapsed in 2018, lead investigator advocate Terry Motau, in his report, referred to the scandal as the “Great Bank Heist”.

Five VBS executives have since been sequestrated, with a high court order having ruled that Zuma was not entitled to any state funds to fight a personal legal battle that had nothing to do with his official duties as president.

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Like a typical dodgy debtor, he is buying time