Simelane was the mayor of Polokwane when she received a 500k loan from a company that brokered unlawful investments into VBS Bank.
The DA and Good party are gunning for Justice Minister Thembi Simelane following explosive revelations that she was embroiled in the VBS Bank scandal.
Simelane allegedly took a R575 600 “commercial loan” from Gundo Wealth Solutions, a company that brokered unlawful investments of R349 million into the now defunct VBS Mutual Bank by the Polokwane Municipality while she was mayor of the city in 2016.
Gundo Wealth Solutions owned Ralliom Razwinane, that brokered unlawful investments of R349 million into the now defunct VBS Mutual Bank by the Polokwane Municipality while she was mayor of the city in 2016.
The justice minister allegedly used the “loan” from the company owned by Ralliom Razwinane to purchase a coffee shop in Sandton.
Razwinane is currently on trial for fraud, corruption and money laundering for his role as a commissions agent connecting municipalities with VBS.
Simelane insists everything was “above board”, according to the Daily Maverick report.
“DA deeply concerned”
DA MP and justice spokesperson Glynnis Breytenbach said the party is “deeply concerned by the disturbing revelations” surrounding Simelane.
“At the very least, the minister needs to be brought before parliament to account for what measures she intends to put in place to manage the glaring conflict of interest between herself as Minister of Justice and Constitutional Development and her role involving the National Prosecuting Authority, which must surely be investigating the minister and this transaction.”
“It has once again fallen on the private sector and journalist to uncover the full extent of VBS looting. The VBS looting has affected the poor, marginalised and vulnerable victims who invested their life savings in the hopes of building a better life, but unfortunately lost everything at the hands of corrupt and greedy politicians and these victims continue to suffer without any feedback while justice is not served,” Breytenbach said.
🚨The DA is moving for Justice Minister Thembi Simelane to appear before Parliament over allegations of receiving a “loan” linked to the VBS Bank scandal.
We demand accountability to ensure justice for the VBS victims who were robbed of their life savings:https://t.co/oFDBrRuFac pic.twitter.com/QPlUHesZG5
— Democratic Alliance (@Our_DA) August 26, 2024
ALSO READ: VBS Bank: Formal complaint laid over Justice Minister Simelane’s ‘dodgy’ loan
“Best interests of SA”
The Good party’s Brett Herron said it is “completely untenable” to have Simelane responsible for protecting the rule of law, embroiled in the ongoing VBS fraud and corruption scandal.
“As the minister responsible for upholding the integrity of the justice system, she must ensure that the National Prosecuting Authority (NPA) is resourced and able to execute its functions without any interference.
“In this case, the NPA is actively involved in investigating and prosecuting the VBS crimes that have resulted in the looting of the most vulnerable and marginalised South Africans,” Herron said.
Herron said President Cyril Ramaphosa has “no choice but to act in the best of the country and in the interests of an untainted criminal justice process relating to all who are implicated in the VBS crimes”.
“Unfortunately that means that Simelane cannot remain the minister responsible for a justice system that may well have to investigate and prosecute her if the allegations sustain a prima facie case.
“Equally, she cannot remain at the helm if a decision not to prosecute is the ultimate outcome and is to have unimpeachable credibility,” Herron said.
ALSO READ: AfriForum opens criminal case against Malema and Shivambu over VBS
“Grave concern”
ActionSA has already filed an urgent complaint with the Public Protector against Simelane in connection with an alleged loan she took from an accused VBS Bank investment broker.
The party’s Athol Trollip said they will write to inform Ramaphosa about the complaint against Simelane.
“Consequently, it is a matter of grave concern that Simelane, who now oversees the Department of Justice and who wields significant influence over the National Prosecuting Authority (NPA), is the very person responsible for the institution tasked with prosecuting corruption, potentially including this very matter.
Trollip said if the Public Protector concluded there was sufficient evidence of wrongdoing, it would ask Ramaphosa to remove Simelane as justice minister.
State capture
In his weekly newsletter “From the desk of president on Monday, Ramaphosa said his government has been hard at work to implement Zondo’s recommendations on state capture.
“Not only have we worked to hold those responsible for state capture to account and to recover stolen funds, but we have also put in place laws, institutions and practices to ensure that state capture never happens again. We continue to take steps to prevent, detect and act against corruption,” Ramaphosa said.
ALSO READ: Former VBS boss Matodzi accuses Malema and Shivambu of ‘fleecing millions’ from bank
