Cape Town – The Democratic Alliance (DA) has urged President Cyril Ramaphosa to address the controversy surrounding Justice Minister Thembi Simelane, who is implicated in a “dodgy” VBS Mutual Bank loan.
Reports indicate that Simelane took a loan of R575,600 from Gundo Wealth Solutions, a company owned by Raliom Razwinane. In 2016, between September and October, Gundo Wealth Solutions received R1.66 million in kickbacks from VBS Bank.
At the same time, Simelane was the mayor of Polokwane and during that time, had negotiated unlawful investments of R349 million into VBS Mutual Bank, Daily Maverick reported.
With the loan, Simelane purchased two coffee shops and used the kickbacks in exchange for large investments by the Polokwane Municipality in VBS, the report said.
The minister appeared before the Justice Portfolio Committee and denied having any improper relations with the contractor or receiving any financial benefits, Newzroom Afrika reported.
“I did not have any improper relationship with the contractor appointed by the municipality, and let me give the context to this assertion,” she said.
[WATCH] Minister Thembi Simelane is appearing before the Justice Portfolio Committee to give some answers on the loan she received from a company linked to the now-defunct VBS Mutual Bank. She says she had no improper relationship with the contractor appointed by the Polokwane… pic.twitter.com/n7Ka3WwaW8
— Newzroom Afrika (@Newzroom405) September 6, 2024
The DA has questioned Ramaphosa’s prior knowledge of the loan, alleging he was informed before appointing Simelane to Cabinet in 2021, yet now calls for an explanation.
DA MP Glynnis Breytenbach has demanded transparency and raised concerns over the delay in addressing the issue, especially with a criminal investigation by the Hawks underway, The Citizen reported.
“News reports allege that the President was informed about this dubious transaction in advance of Simelane’s original appointment to Cabinet in 2021, yet he now claims to be “demanding an explanation.” This apparent contradiction cannot go unaddressed.
“If Ramaphosa was indeed aware of this matter from the beginning, his current demand for an explanation about information he already possesses raises serious questions about his apparent refusal to act against Simelane,” Breytenbach said.
Last month, ANC Secretary-General Fikile Mbalula said the decision Simelane’s position as Minister of Justice and Constitutional Development rested with Ramaphosa.
“So in as far as how she is affected by the debacle in relation to her responsibilities as a minister, playing an executive role in terms of the cabinet of the country, that is the prerogative of the president to deal with. Whether or not this minister is fit, given the report that is on the table, to continue,” SABC News quoted Mbalula as saying during a media briefing in Boksburg, Ekurhuleni.
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Compiled by Betha Madhomu
