Bank explains block on Zuma account
● FNB placed a hold on outgoing payments from former president Jacob Zuma’s bank account because of a court order authorising the sheriff to attach the account over Zuma’s multimillion-rand debt to VBS Bank.
The bank this week found itself under fire from the MK Party and other political parties for its decision to “close” Zuma’s bank account.
The MK Party claimed the “closure” of the account formed part of a bigger plan to weaponise banks to snuff out the economic lives of so-called rebellious individuals to intimidate and ultimately silence them — and those who might contemplate following in their footsteps.
FNB denied that Zuma’s account was closed, saying incoming payments were unaffected.
“This instruction from the court results from the process now being managed by the VBS Mutual Bank liquidators, and FNB was legally required to comply,” the bank said.
In August 2022, the Pietermaritzburg high court granted VBS Mutual Bank liquidator Anoosh Rooplal an order forcing Zuma to repay with interest on a R6.5m loan he had taken in 2016.
Zuma took the hefty loan months after the Constitutional Court ordered that he should pay back money irregularly used for “security upgrades” at his private home in Nkandla. It found that state funds were used to build structures not related to security purposes, including a visitors’ centre, amphitheatre, cattle kraal, chicken run and swimming pool.
However, liquidators were unable to attach Zuma’s Nkandla homestead because it was on land owned by the Ingonyama Trust.
After the 2022 summary judgment, various payments were made by Zuma to settle the VBS debt, but it was not paid in full.
In October 2023, the high court issued a writ of execution authorising the sheriff to attach and take into execution all Zuma’s bank accounts and “cause to be realised the return” of R2.9m, together with interest, from August 2019.
This writ of execution was served by the sheriff on February 29 2024.
Asked how much the sheriff had recovered, the spokesperson for the VBS liquidator, Louise Brugman, refused to comment on the steps the sheriff had taken after the October court order.
This instruction from the court results from the process now being managed by the VBS Mutual Bank liquidators, and FNB was legally required to comply