Politically Exposed Persons (PEPs) are major risks for banks. The South African VBS Mutual Bank, recovering since March 2018, will have learned at his expense.
The institution had granted former South African President Jacob Zuma a mortgage loan of 8.5 million rand (1 rand = 0.06 euros), at least nine months before signing the documents certifying the guarantee. of the loan.
In September 2016, Zuma used this obligation to repay part of the public funds used in the refurbishment of its refurbishment. The Constitutional Court had then forced him to reimburse extraordinary expenses used in this renovation denounced by the South Africans. The mortgage credit granted to Zuma has been described as a “fictitious transaction” in court documents submitted to the Supreme Court of Appeal.
Former President Jacob Zuma only began repaying his loan of 7.8 million after VBS Mutual Bank’s turnaround last March.
A veritable symbol of the drift of the Rainbow Nation in terms of governance, VBS Mutual Bank was allegedly looted by 50 people and organizations, according to a report released last Wednesday by the South African Reserve Bank (SAB).
