VBS Bank: ‘Let us not condemn without evidence,’ says Madonsela

Former public protector Thuli Madonsela has called for caution regarding the allegations against Justice Minister Thembi Simelane, emphasising that due process should be allowed in the ongoing scrutiny over the VBS Mutual Bank scandal.

Madonsela’s plea comes after calls for “nothing less than a full disclosure from Simelane on the VBS allegations against her, in the interests of transparency and accountability”.

Legal standard

The former public protector said that the legal standard for determining criminality is much higher than what is reported in the media.

“Before we assume corruption, let’s wait for a legal investigation. Journalists do amazing work but the standard they use for connecting dots is lower than the legal standard.

“If the legal standard were the same, I would have found Malema guilty of corruption for receiving the proceeds of corruption in On the Point of Tenders and President Zuma in the Nkandla matter. I had similar challenges in abuse of funds at Sassa.

“But I had to go with legally admissible evidence and acknowledge they benefitted without finding them personally guilty of corruption,” Madonsela said.

ALSO READ: Ramaphosa summons Justice Minister Simelane to explain ‘dodgy’ VBS-linked loan

Evidence

Madonsela said in this case, “there is no information on the nexus”.

“The article tells us nothing regarding the then mayor’s personal involvement in the VBS transactions nor provides any evidence, documentary or viva voce, that points to the mayor having activated/facilitated the transaction or rewarded for her part.

“I hold no brief for her. I don’t know her personally. But let us not get hyped and condemn without evidence,” she said.

President Cyril Ramaphosa has since summoned Simelane to provide a detailed report on allegations that link her to the VBS Mutual Bank scandal.

ALSO READ: Pressure mounts on Thembi Simelane to account for dodgy VBS ‘loan’

Simelane and VBS

Simelane allegedly took a R575 600 “commercial loan” from Gundo Wealth Solutions, owned by Ralliom Razwinane. Razwinane is currently on trial for fraud, corruption and money laundering over the VBS Bank collapse. 

Simelane used the “loan” to buy a coffee shop in two transactions in October 2016. The payments appear linked to kickbacks received in exchange for large deposits by Polokwane into VBS, while she was mayor of the municipality.

Razwinane is facing charges for allegedly acting as an agent to secure business for VBS from municipalities.

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

Investigators found these to be corrupt transactions and contraventions of the Municipal Finance Management Act.

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