Zuma’s Nkandla lender ‘not bankrupt’

VBS Mutual Bank has denied claims it has been liquidated.

There were rumours on social media yesterday that VBS was going into liquidation, with some people even alleging it was a result of the bank’s loan to President Jacob Zuma.

The bank admitted there had been cash shortages at the Thohoyandou branch over the past few days. Bank spokesperson Gugu Mthembu said the problem was the fault of cash management security supplier Fidelity Cash Solutions, which apparently did not deliver cash to the said branch.

Mthembu said a cash shortage did not equal a money shortage, adding it was just a logistical issue that had been solved on Tuesday.

“The Thohoyandou branch operations were restored by yesterday afternoon,” said Mthembu.

The bank made national headlines when it offered Zuma a loan of more than R7 million so he could settle his Nkandla debt. Since then, the bank has been under scrutiny from Zuma’s critics.

But it has enjoyed support from other politicians, such as Andile Mngxitama, leader of Black First Land First. Mngxitama moved his party’s bank accounts to VBS, saying he was “buying black” by supporting the bank.

The bank also made headlines this past weekend when head of Twelve Apostles’ Church in Christ, Caesar Nongqunga, called on about 4.5 million members to abandon other banks and switch to VBS.