Minister of Justice Simelane faces mounting scrutiny over VBS bank scandal

South Africa’s Minister of Justice, Thembi Simelane, is under intense scrutiny following allegations linking her to the VBS Bank scandal.

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BizNews Reporter

South Africa’s Minister of Justice, Thembi Simelane, is under intense scrutiny following allegations linking her to the VBS Bank scandal. As she prepares to appear before Parliament’s Portfolio Committee on Justice and Constitutional Development, the controversy surrounding her role has escalated, with various political figures calling for her suspension.

The allegations stem from recent investigations by both News24 and Daily Maverick, which uncovered Simelane’s connection to a “commercial loan” of R575,600 from Gundo Wealth Solutions. This loan, used to purchase a coffee shop in Sandton, has raised red flags due to its ties to VBS Bank, a financial institution notorious for its fraudulent activities. According to the investigation, Gundo Wealth Solutions, owned by Ralliom Razwinane, was involved in brokering VBS investments, leading to questionable transactions.

ActionSA’s Parliamentary caucus leader, Athol Trollip, has voiced strong concerns about the situation, describing it as a severe conflict of interest. “Simelane’s involvement as mayor of Polokwane in approving a R350 million investment into VBS, followed by a loan from the same broker, cannot be coincidental,” Trollip asserted in an interview with BizNews. He called for an independent investigation, emphasizing that Simelane’s continued tenure undermines the integrity of the Justice Department and the National Prosecuting Authority (NPA).

In another BizNews interview Glynnis Breytenbach from the Democratic Alliance (DA) also questioned Simelane’s ability to manage potential conflicts of interest. “The short period between the investment and the loan, coupled with the involvement of VBS money, raises serious concerns. How can the Minister of Justice oversee matters related to the NPA when she might be implicated in the very issues being investigated?” Breytenbach remarked.

Simelane has denied any wrongdoing, maintaining that there is no conflict of interest and that she was unaware of the loan’s origins. She has also stated that she did not have influence over NPA decisions. However, the mounting pressure from various quarters, including GOOD and the Economic Freedom Fighters (EFF), has led to increased calls for her suspension.

In response, ANC Secretary-General Fikile Mbalula indicated that the matter is being reviewed and that Simelane will appear before the ANC’s Integrity Commission. “The decision on her position in the Cabinet will ultimately be President Cyril Ramaphosa’s,” Mbalula said.

As the investigation unfolds, the pressure on Simelane continues to grow, with many demanding transparency and accountability in the face of serious allegations. The outcome of her upcoming appearance before the portfolio committee will be closely watched, as it may determine her future in the Cabinet and the broader implications for South Africa’s justice system.