President Ramaphosa Calls for Detailed Report from Simelane on Alleged VBS Corruption Involvement

by Selinda Phenyo
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Johannesburg – President Cyril Ramaphosa has expressed deep concern over media reports alleging corruption involving the Minister of Justice and Constitutional Development, Ms Thembi Simelane. These reports have surfaced at a time when South Africa is grappling with the aftermath of various corruption scandals, further heightening public scrutiny on government officials.

The allegations against Minister Simelane pertain to her tenure as the Mayor of Polokwane Municipality, where she is accused of having received improper funds from the now-defunct VBS Mutual Bank. The President has formally requested a comprehensive report and briefing from Minister Simelane to clarify her involvement in the VBS Mutual Bank scandal.

Allegations and the President’s Response

Recent investigative reports by News24 and Daily Maverick have revealed that during her time as mayor, Simelane allegedly took a loan of R575,600 from Gundo Wealth Solutions, a company implicated in brokering unlawful investments totaling R349 million into VBS Mutual Bank on behalf of various municipalities. The funds were reportedly used to open a coffee shop in Sandton, Johannesburg .

In response to these serious allegations, President Ramaphosa has demanded a detailed explanation from Minister Simelane, stressing the importance of transparency and accountability in public office. Presidential spokesperson Vincent Magwenya conveyed that the President is closely monitoring the situation and expects the Minister to provide clarity on the matter .

Political and Civil Society Reactions

The allegations against Minister Simelane have triggered strong reactions from opposition parties and civil society. The Economic Freedom Fighters (EFF) have been particularly vocal, calling for Simelane’s immediate resignation. The EFF has dismissed Simelane’s defense of the loan as a legitimate commercial transaction, labeling it as a weak attempt to obscure the reality of her actions. The party has also criticized her for failing to address the apparent conflict of interest and for her role in facilitating illegal investments during her mayoralty .

ActionSA has taken a formal approach by referring the matter to the Public Protector, urging an investigation into a potential violation of the Executive Members’ Ethics Act. The party’s Parliamentary Leader, Athol Trollip, emphasized that Simelane’s current role as Justice Minister, with significant influence over the National Prosecuting Authority, necessitates a swift and thorough probe to determine if her past actions constitute unethical or illegal conduct .

Civil society groups, including Defend Our Democracy, have also joined the chorus of voices demanding answers from Minister Simelane. They have underscored the importance of maintaining integrity within the Department of Justice, particularly as the nation continues to combat the pervasive effects of corruption.

Simelane’s Position

Despite the mounting pressure, Minister Simelane has remained largely silent on the allegations. In her few public statements, she has denied any wrongdoing, asserting that the loan was part of a legitimate business transaction. However, her refusal to fully address the conflict of interest concerns has only fueled further skepticism and calls for her resignation .

President Ramaphosa Calls for Detailed Report from Simelane on Alleged VBS Corruption Involvement
Minister Simelane

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