President Jacob Zuma and his family have decided to take a home loan to pay back his R7.8 million Nkandla bill and have confirmed they will not be accepting donations.
The City Press is reporting that negotiations with VBS Mutual Bank are at an advanced stage after the bank and Zuma’s lawyer Michael Hulley agreed to terms at a meeting in Sandton on Wednesday.
African National Congress (ANC) members and other supporters had offered to donate to help Zuma pay back the money.
The newspaper says Zuma must first settle an outstanding balance on his current home loan with FNB before his private estate can be refinanced.
It’s understood his family was wary about the debt being settled in a quote political way.
They are firmly of the view that any money offered by ANC leaders or members to help the president settle the Nkandla bill should be declined.
One of the options on the table was for the president to refinance the KwaZulu-Natal property, which has increased in value, owing to the R246 million security upgrades.
Zuma has consistently maintained that he was unaware of the costs to upgrade his home.
Earlier this year, judges said Zuma had failed to uphold his oath of office because he had refused to comply with the remedial action as specified by the Public Protector over Nkandla.
Last month, Treasury said it contracted two independent quantity surveying firms to conduct two separate investigations, and that it then moderated the results of those two probes.
In the end, the finance ministry said of the five facilities that were in question, a reasonable percentage of the estimated costs that the president would have to pay personally came to nearly 88 percent of their total cost.
National Treasury released the figure just a day short of the 28 June deadline set in the Constitutional Court ruling in March this year.
The court found that President Zuma failed to uphold, defend and respect the Constitution as the supreme law of the land in handling the Nkandla debacle.
He has until the end of next month to repay the money as determined by treasury.