VBS scandal: Justice Minister’s loan-funded coffee shop doesn’t exist anymore

If Justice Minister Thembi Simelane did indeed borrow money to start a coffee shop in Sandton – as opposed to money allegedly linked to the VBS Mutual Bank scandal – then it wasn’t a very successful venture, judging by the fact the shop vanished more than a year ago.

The Citizen visited the Fredman Towers office building in Sandton to verify whether Simelane’s coffee shop, called Silvana’s according to some reports, was still operating.

Minister’s ‘shop’ visited

A security guard at the building said the shop had been vacant since last year and only occupied in February this year, when a new tenant moved in.

The office building is not an obvious location for a coffee shop, given that it is in an area which attracts little foot traffic.

Pressure is mounting on Simelane because of allegations linking her to the VBS Mutual Bank scandal, while civil society organistions are raising concerns about the implications of her alleged involvement, warning that the scandal could erode public trust in the justice system if not addressed promptly and transparently.

The groups have expressed concern over the minister’s silence following reports detailing the alleged transgressions.

Chris Oxtoby, a research consultant with Freedom Under Law, said there is a crucial need for the minister to respond transparently to the allegations.

“The allegations raise questions, appropriateness of the minister’s decision to enter into such a loan and it may become necessary for her to be suspended or step down,” he said.

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R500 000 loan from VBS Mutual Bank

This comes on the back of reports published by News24 and Daily Maverick on Monday, detailing Simelane’s R500 000 “commercial loan” from a company that facilitated about R349 million worth of municipal investments into VBS.

Reports indicate the money came from Gundo Wealth Solutions during Simelane’s tenure as mayor of Polokwane, to purchase a coffee shop in Sandton.

Gundo Wealth Solutions is owned by Ralliom Razwinane, who is presently on trial for fraud, corruption and money laundering over the VBS Bank collapse. Simelane is expected to take up her position to the Judicial Service Commission at its next sitting in October.

Oxtoby noted the particular importance of her appointment, saying there should be no question marks over the minister’s probity and ethics.

“It is damaging for public confidence in the justice system. The minister bears political responsibility for law enforcement agencies involved in the investigation and prosecution of alleged crimes,” he added.

“It would be untenable for the minister to have unresolved allegations against her which may implicate her in unlawful activity.”

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

ActionSA, DA and Outa respond

ActionSA wrote to President Cyril Ramaphosa and lodged a complaint with public protector Kholeka Gcaleka to determine whether Simelane’s involvement in these transactions constituted a conflict of interest or violations of ethical codes.

The DA has submitted a request to the chair of the portfolio committee on justice and constitutional development for Simelane to appear before the committee, while the EFF yesterday called for her resignation.

Wayne Duvenage from the Organisation Undoing Tax Abuse said the growing scrutiny raises concerns about ethical standards of public officials and the need for transparency in government.

“There are so many instances of a lack of ethics in senior leadership positions across various departments, entities and state-owned companies,” he said.

“It’s concerning that we’re no longer surprised to hear about questionable conduct involving a person of her stature.”

Duvenhage emphasised the need for stronger institutional checks, noting it was clear the appointment of Simelane was not handled correctly.

“All individuals appointed to senior positions should undergo checks for potential conflicts of interest and ethical conduct,” he said.

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