Justice Minister Thembi Simelane.
The South African security cluster is under the microscope following allegations of corruption levelled against Justice Minister Thembi Simelane which has embarrassed President Cyril Ramaphosa and the African National Congress.
President Ramaphosa who is the leader of the 7th administration of government of national unity (GNU) summoned Minister Simelane to explain herself following allegations that she received R575 600 loan from the Gundo Wealth Solutions in 2016 to purchase a coffee shop in Sandton during her tenure as the Executive Mayor of Polokwane Municipality. The loan was paid directly to the owner of a coffee shop in Sandton, which Simelane was purchasing, in late 2016.
As dark clouds hung over Minister Simelane, Ramaphosa’s spokesperson Vincent Mangwenya said Ramaphosa had noted the reports with unease.
“The President has requested a detailed report and briefing from the Minister on the matter,” said Magwenya.
At that time she went by her ex-husband surname Nkadimeng and she brokered unlawful investments of R349 million into VBS Bank by Polokwane Municipality while was a Mayor. The Polokwane Municipality invested R130 million with VBS Mutual Bank, making an R50 million investment in September 2016 and an R80 million investment a month later. Both of these investments were unlawful.
Gundo Wealth Solutions is owned by Rallion Razwinane who is directly linked to the illegitimate investments of municipal funds into the now non-operational VBS Mutual Bank.
Razwinane is currently on trial for fraud, corruption, and money laundering following his role as a commission agent connecting municipalities which included Polokwane Municipality, with the VBS.
Minister Simelane, the spouse of the controversial former Road Agency Limpopo (RAL) board chairperson Matome Ralebipi which milked the State purse without accelerating and delivering on its mandate didn’t respond to The Azanian questions when pressed for comment. She also ignored calls despite several attempts to contact her.
The Azanian wanted to establish what process was followed to appoint Gundo Wealth Solutions at the time she was the Executive Mayor of Polokwane Municipality?
Did she consider it a common practice or rather ethical to ask for a loan from a service provider working for her institution? Does she agree that asking for a loan from Gundo Wealth Solutions may constitute a conflict of interest? Was Gundo Wealth Solutions authorised to grant loans to clients as a financial service provider?
How did she service the loan from Gundo Wealth Solutions? Will she consider resigning because there were Mayors who were involved in investing municipal funds in VBS that were held accountable and recalled previously by the ANC? What action does she think must be taken against her for committing similar offences?
Will she consider stepping aside now that her involvement in the VBS scandal has been exposed beyond what was publicly reported in the past?
Does she think her leadership of the Justice department overseeing crime investigations and prosecution responsibilities may put undue pressure on the possible investigation of these allegations?
Does she think President Ramaphosa and the ANC should not act against her immediately? Is she considering voluntarily resigning as the minister to protect her integrity and that of her party and government?
Meanwhile, various political parties the Democratic Alliance (DA) and Congress of the People (COPE) and the Economic Freedom Fighters (EFF) , Action SA , Bolsheviks Party of South Africa including civic society organisations Freedom Under Law (FUL), the Ahmed Kathrada Foundation, Judges Matter and Defend Our Democracy have added their voice to the call that Minister Simelane must be transparent or face the music because she has been rocked by the VBS scandal.
National secretary general of the Bolsheviks Party of South Africa Seun Mogotji said: “The VBS heist skeletons continue to pop up and more prominent politicians are implicated. All we want is for the minister to bring South Africans into confidence by giving us proof of the loan agreement and proof that the loan was settled, we want to see that information otherwise she must be removed from her position and justice must take its course.”
“Being the Minister of Justice, we believe she will use her position to influence and manipulate judicial processes to evade accountability. We believe the R575 000 was gratuity from the bank thanking her for ensuring the Polokwane Municipality invests in VBS. She must prove this narrative wrong and clear her name by providing evidence of the loan agreement and proof of the loan settlement.”
Action SA also filed an urgent complaint to the Public Protector Advocate Kholeka Gcaleka to investigate the allegations levelled against Minister Simelane.
Athol Trollip, Action SA’s parliamentary caucus leader confirmed that his party will engage President Ramaphosa about their discontentment on this matter.
DA MP and justice spokesperson Glynnis Breytenbach said the party is deeply concerned by the disturbing revelations in relation to the Minister Simelane scandal.
“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,” Breytenbach said.
“It has once again fallen on the private sector and journalists 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.”
President Cyril Ramaphosa demands explanation from Justice Minister Simelane.
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