DA calls on Ramaphosa to ‘break silence’ on Simelane’s VBS loan scandal

The Democratic Alliance (DA) has called on President Cyril Ramaphosa to “break his silence” on embattled Justice Minister Thembi Simelane’s “dodgy” VBS bank loan scandal.

Simelane is under pressure to step down after she took the R575,600 “commercial loan” from Gundo Wealth Solutions, a company that allegedly brokered unlawful investments of R349 million by the Polokwane Municipality into the now-defunct VBS Mutual Bank.

Charges

ActionSA has filed criminal charges against the minister, accusing her of violating the Prevention and Combating of Corrupt Activities Act (Precca) and committing the common law crime of forgery.

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

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Last month, Ramaphosa said the allegations against Simelane would not be “swept under the carpet.”

‘Ramaphosa knew about Simelane’

However, the DA’s Glynnis Breytenbach said it is time for Ramaphosa to explain why he appointed a minister with “a questionable past” after he was allegedly informed about the loan transaction ahead of Simelane’s original appointment to Cabinet in 2021.

“News reports allege that the President was informed about this dubious transaction in advance of Simelane’s original appointment to Cabinet in 2021, yet he now claims to be “demanding an explanation.” This apparent contradiction cannot go unaddressed.

“If Ramaphosa was indeed aware of this matter from the beginning, his current demand for an explanation about information he already possesses raises serious questions about his apparent refusal to act against Simelane,” Breytenbach said.

‘Proof of loan payment?’

Breytenbach said the public deserves to know why the issue was only brought before the African National Congress’ (ANC) Integrity Commission now, years after the loan was originally exposed and investigated by the Limpopo Treasury.

“What has changed, other than the looming criminal investigation by the Hawks? Simelane’s failure to make the loan agreement and proof of payment publicly available further deepens suspicion.

“It is time for the President to stop stalling, provide full transparency, and explain why he appointed a Minister with such a questionable past – and why he refuses to take decisive action against her,” Breytenbach said.

‘Simelane may not survive’

Last month, Political analyst and North West University Professor Andre Duvenhage said he believed the embattled Justice Minister “may not survive” the allegations and that Ramaphosa will come under pressure to take action against her.

“The problem is Ramaphosa has Simelane within his cabinet, directly implicated the VBS Bank scandal and in that sense, I believe it is serious and to be consistent, I think there will be action taken against Simelane.

“I cannot see her surviving this ordeal in a direct way. In fact, if what he said about her and if it is correct, I think there’s trouble. I don’t think the president will have another choice as to act,” Duvenhage said.

Duvenhage said the corruption allegations against Simelane can become a real problem in the government of national unity (GNU).

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