Ramaphosa demands answers from Simelane over VBS loot

President Cyril Ramaphosa is demanding answers from justice minister Thembi Simelane over allegations levelled against her over the VBS Mutual Bank.

During her tenure as Polokwane municipality mayor, Simelane reportedly took a loan of R575 600 from Gundo Wealth Solutions, a corrupt brokerage investment company that facilitated connections and “investments” between municipalities, including the Polokwane Municipality, and VBS.

THEMBI SIMELANE’S ALLEGED LINKS TO VBS MUTUAL BANK

As previously reported, shortly after securing two deposits totalling R130 million from the Polokwane Municipality in October 2016, VBS reportedly sent Gundo Wealth Solutions owner Ralliom Razwinane a payment of R1.66 million, who then funnelled R575 600 to Simelane through a company named Ricovert, which owned the Silvanas Coffee Shop in Sandton at the time. 

Razwinane is currently on trial for fraud, corruption, and money laundering related to the VBS saga.

On Wednesday, Presidency spokesperson Vincent Magwenya said Ramaphosa has requested a detailed report and briefing from Simelane on the matter.

POLITICAL PARTIES REACT

ActionSA has filed a complaint with the Public Protector against Simelane.

ActionSA caucus leader in Parliament Athol Trollip said they believe this is a clear case of an apparent conflict of interest, with the integrity of the justice system under her stewardship at stake.

Meanwhile, the Economic Freedom Fighters (EFF) has called for Simelane to resign.

The party said as mayor, Simelane played a pivotal role in enabling these unlawful deposits into VBS Mutual Bank—deposits that were part of a larger scheme involving multiple municipalities and state entities across South Africa.

The VBS scandal saw over R2 billion looted, devastating the lives of thousands of ordinary South Africans, many of whom lost their life savings in this fraudulent scheme.

“It has also been uncovered that Gundo Wealth Solutions was not a legitimate credit provider and had no legal basis to offer loans, exposing Simelane’s ‘commercial loan’ as a bribe thinly veiled as a business transaction. This scandal is not just a tale of financial mismanagement; it is a stark example of the rot within the ANC’s leadership,” the party said. 

The EFF further accused Simelane of exploiting her position for personal gain as she was entrusted with safeguarding public funds, yet she chose to engage in corrupt dealings. 

DO YOU THINK JUSTICE MINISTER THEMBI SIMELANE WILL STEP ASIDE FROM HER DUTIES?

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