DA submits PAIA request for Simelane’s VBS report to Ramaphosa

Democratic Alliance (DA) MP Glynnis Breytenbach has submitted a request under the Promotion of Access to Information Act (PAIA) to obtain the report that Justice and Constitutional Development Minister Thembi Simelane provided to President Cyril Ramaphosa regarding her alleged involvement in the “dodgy” VBS Bank loan scandal.

Simelane has faced severe criticism over a R575,600 “commercial loan” she received from Gundo Wealth Solutions, a company accused of brokering unlawful investments of R349 million by the Polokwane Municipality into the now-defunct VBS Mutual Bank.

‘Commercial loan’

Simelane used the “commercial loan” from Gundo Wealth Solutions, owned by Ralliom Razwinane, to purchase a coffee shop in Sandton.

Razwinane is currently on trial for fraud, corruption and money laundering for his role as a commission agent connecting municipalities with VBS.

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When VBS collapsed in March 2018, forensic investigations revealed that Razwinane allegedly received kickbacks amounting to R24.2 million for acting as a commission agent for various municipalities and state entities.

Simelane has denied any wrongdoing, insisting that everything was “above board” and that the loan was fully repaid.

‘Delays’

Breytenbach criticized Ramaphosa for failing to act on the report three months after receiving it. She argued that the delay has created an “untenable conflict of interest.”

“Almost three months later, the President is still considering the report. It cannot be that a Minister of Justice, accused of corruption, can continue to oversee the Justice system, and more importantly the National Prosecuting Authority, the very body tasked with investigating her.

“The PAIA process seems to be the only way to get the answers South Africa needs. Every day without action further damages the integrity of our Justice system and legal institutions,” Breytenbach said.

‘Matter being dealt with’

In September, Ramaphosa said the allegations against Simelane over the explosive VBS bank allegations against her would not be “swept under the carpet.”

During the same month, when answering questions in the National Council of Provinces, Ramaphosa confirmed that he had received a report from Simelane.

He said the matter surrounding Simelane is “being dealt with” and requested “time and space” to deal with the issue.

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On 17 October, when Ramaphosa answered questions in the National Assembly, again asked for “the time and opportunity to consider this matter so that finality can then be reached”.

Loan repaid

Simelane appeared before Parliament’s Portfolio Committee on Justice in September. She stated that she repaid the loan and interest in three instalments of R283,333 on 9 October 2020, 12 November 2020, and 7 January 2021.

During the briefing, Simelane also denied having an improper relationship with Gundo Wealth Solutions hired by the Polokwane municipality.

“It is a matter of public record that Polokwane municipality invested money into VBS bank during my tenure. No money was paid by Polokwane Municipality to Gundo Wealth Solutions. I did not have an improper relationship with a contractor employed by the municipality.”

Continuing duties

Simelane added the office she holds does not have a direct relationship in “instructing or convincing” the NPA on how to act on their mandate.

Meanwhile, Simelane continues to perform her duties. On Thursday and Friday, she attended the 14th International Congress of Justice Ministers in Rome, Italy.

ALSO READ: VBS Bank: Formal complaint laid over Justice Minister Simelane’s ‘dodgy’ loan