JOHANNESBURG - The Passenger Rail Agency of South Africa (Prasa) is reportedly investing R1 billion with the bank that lent President Jacob Zuma millions to pay back the money in the Nkandla scandal.
The Sunday Times is reporting that senior Prasa officials have thrown their weight behind a move to ensure that the first R500 million tranche of the investment is paid to VBS Mutal Bank this week without any agreement signed.
Prasa officials have denied the R1 billion investment is being paid to the bank.
However, the Sunday Times says it’s seen correspondence from the rail agency’s acting CEO Lindikhaya Zide confirming the partastatl's commitment to the deal with a return of 8.25% per annum.
This is despite the bank not meeting the state entity's investment requirements and Prasa itself battling financially.
The bank made headlines in 2016 when it lent Zuma R7, 8 million to repay the state for non-security upgrades to his Nkandla homestead after the public protector found he had unduly benefitted from state spending.
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