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

ActionSA has filed an urgent complaint with the Public Protector against Minister of Justice Thembi Simelane in connection with an alleged loan she took from an accused VBS Bank investment broker.

Simelane allegedly took the R500 000 loan from a company that brokered unlawful investments of R349 million into VBS Mutual Bank by the Polokwane Municipality while she was mayor of the city in 2016.

‘Commercial loan’

Simelane allegedly used the “commercial loan” of R575,600 from Gundo Wealth Solutions, owned by Ralliom Razwinane, to purchase a coffee shop in Sandton.

Razwinane and Gundo also brokered investments on behalf of VBS Mutual Bank and the Polokwane Municipality invested R349 million in the bank, according to a report in Daily Maverick.

When VBS imploded in March 2018, forensic investigations found it had rewarded Razwinane with kickbacks totalling R24.2 million for being a commissioning agent for various municipalities and state entities.

Corrupt transactions

According to the report, investigators found these to be corrupt transactions and contraventions of the Municipal Finance Management Act.

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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Concerns

ActionSA’s Athol Trollip said the party will write to inform President Cyril Ramaphosa about the complaint against Simelane.

“The question is whether South Africa’s justice minister is possibly the recipient and beneficiary of illicit VBS cash, as the available information suggests.

“Consequently, it is a matter of grave concern that Minister Simelane, who now oversees the Department of Justice and who wields significant influence over the National Prosecuting Authority (NPA), is the very person responsible for the institution tasked with prosecuting corruption, potentially including this very matter,” the Trollip said.

Removal

Trollip said if the Public Protector concluded there was sufficient evidence of wrongdoing, it would ask Ramaphosa to remove Simelane as justice minister.

The Citizen has contacted the Justice Ministry’s spokesperson Tsekiso Machike for comment. This will be added to the article once received.

As minister of justice, Simelane oversees the investigation and prosecution of those involved in the collapse of VBS.

Simelane is also a member of the justice and crime prevention cluster in Cabinet, which includes the police and the Hawks, who are also investigating the VBS matter.

She was Polokwane mayor between 2014 and 2021 and was appointed as justice minister in June this year following the national and provincial elections and the formation of the government of national unity (GNU).

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