\u201cThe president will have to fork out R78,000 every month for the next 20 years in order to service this loan of R7.8 million,” Vorster said.<\/p>\n
Talk Show host Bruce Whitfield questioned how many banks would provide a 20-year loan to a 74-year old person of R7.8 million.<\/p>\n
Vorster noted that when a bank approves a loan \u2013 he said two elements stand out \u2013 security and surety.<\/p>\n
From a surety point of view, the financial advisor said that the bank would want some kind of bond over Nkandla. He pointed out that the president already has some kind of a bond at First National Bank for Nkandla.<\/p>\n
The second point is affordability \u2013 serviceability. In terms of public information, the president’s salary is at R2.87 million annually \u2013 or approximately R240,000 per month.<\/p>\n
Vorster noted that because of his age, president Zuma gets certain rebates \u2013 tax benefits. As a result, his after tax income is somewhere in the region R140,000 per month.<\/p>\n
“Of that R140,000, he now has to fork out R78,000 to the bank, which means his after tax income \u2013 his take home pay drops by about 60%, and that makes the affordability quite difficult,” Vorster said.<\/p>\n
The financial advisor raised the question of president Zuma\u2019s age and whether he can service a bond over 20 year, while his after tax income is also questionable.<\/p>\n
“Is there reckless lending involved in this?” Vorster asked.<\/p>\n
VBS Bank, which approved the loan, has three branches in the Limpopo province, a branch in Johannesburg, and a head office in Sandton. The bank is part-owned by the Public Investment Corporation.<\/p>\n
The company has the following shareholding structure:<\/p>\n
Zuma has paid back the money for Nkandla<\/strong><\/a><\/p>\n This is how Zuma will pay back the money for Nkandla<\/a><\/strong><\/p>\n onCourt approves Zuma\u2019s R7.8 million Nkandla bill<\/a><\/strong><\/p>\n![\"shareholding-pie\"](\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2016\/09\/shareholding-pie-640x335.png\")
<\/a><\/p>\nMore on president Zuma<\/h3>\n