Former Polokwane mayor to answer on alleged VBS involvement
Minister Thembi Simelane, the previous mayor of the Limpopo capital, has been linked to improperly received funds.
President Cyril Ramaphosa has requested a detailed report and briefing from former Polokwane mayor Thembi Simelane, now justice and constitutional development minister, about her alleged involvement in the VBS Mutual Bank scandal. When she served as mayor, Simelane used her former husband’s surname, Nkadimeng.
An exclusive report by Daily Maverick claims that while serving as mayor of Polokwane in 2016, Simelane took a loan exceeding R500 000 from a company involved in facilitating unlawful investments of R349m into VBS Mutual Bank by the Polokwane Municipality.
According to the report, Simelane secured a commercial loan of R575 600 from Gundo Wealth Solutions, owned by Ralliom Razwinane, which she allegedly used to purchase a coffee shop in Sandton.
Presidential spokesperson Vincent Magwenya confirmed the president has taken note of the media reports and the allegations linked to the minister.
“The media reports have connected the minister to funds allegedly received improperly from VBS Mutual Bank during her tenure as mayor of the Polokwane Municipality,” Magwenya said.
No deadline has been set for the submission of the report and briefing.
Meanwhile, Polokwane Municipality spokesperson Thipa Selala distanced the municipality from the allegations, stating that while the municipality initially invested in VBS, the funds were withdrawn upon realising the investment was not in compliance with the Municipal Finance Management Act 56 of 2003.
“This withdrawal occurred before the National Treasury issued its circular on the matter, and the municipality did not suffer any financial losses,” Selala told the Polokwane Review.
Attempts to reach Simelane or Razwinane for comment have been unsuccessful.
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