Cape Town — Minister of Justice Thembi Simelane appeared before the Justice Portfolio Committee on Friday to address her involvement in the VBS Mutual Bank scandal.
Simelane was accused of negotiating illegal kickbacks and receiving loans from Gundo Wealth Solutions during her tenure as Polokwane Mayor in 2016.
The ANC has acknowledged these allegations and said that Simelane must answer to both the Portfolio Committee and the ANC’s integrity commission.
In a statement, Simelane emphasised her commitment to transparency and accountability, addressing the concerns raised.
“Minister Simelane remains steadfast to ethical governance and transparency. She has consistently subjected herself to public scrutiny and reaffirms her dedication to accountability,” Justice Department spokesperson, Tsekiso Machike said.
Machike added: “Minister Simelane firmly denies any allegations of wrongdoing and is committed to cooperating fully with all authorities.”
“The Minister has assured the portfolio committee of the existence of proof of payment,” Machike concluded.
[IN PICTURES] Minister Thembi Simelane appearance before the Portfolio Committee on Justice and Constitutional Development – Good Hope Chamber, Parliament, 06 September 2024. pic.twitter.com/GFXQAlqceF
— The DoJ & CD (@DOJCD_ZA) September 6, 2024
Appearing before the commission on Friday, the minister 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.
She explained why Gundo was appointed as the financial advisor on the investment decision of the municipality.
“Mayors, or councillors, are never involved in procurement. So the work of appointment of a service provider is the work of the executives in the municipality,” 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
Simelane said that an advert was run and Gundo was appointed as the investment financial advisor to the municipality for three years.
She also said that her contract was with Gundo and that she had taken the loan from them, and not from VBS.
The mister said that she was aware that Gundo was a registered financial service provider, but later learnt that it was not an accredited company.
[WATCH] Justice Minister Thembi Simelane says her understanding of Gundo Wealth Solutions, the company from which she received a loan, was that it was a registered financial services provider. #Newzroom405 pic.twitter.com/DxSnrrJXcv
— Newzroom Afrika (@Newzroom405) September 6, 2024
[WATCH] Justice Minister Thembi Simelane clarifies that she got a loan from Gundo Investments and not VBS Mutual Bank. #Newzroom405 pic.twitter.com/BnAFXZWMRm
— Newzroom Afrika (@Newzroom405) September 6, 2024
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Compiled by Matthew Petersen
