VBS: Parly committee says Simelane must step down

Pressure is mounting for Justice Minister Thembi Simelane to resign after political experts cited as unconvincing her attempt to explain to parliament yesterday about a loan she allegedly took from one of those deeply involved in the Venda Building Society (VBS) Mutual Bank scandal.

Simelane appeared before parliament’s portfolio committee on justice and constitutional development to answer questions on her involvement in the VBS saga.

Interrogation on VBS

The members questioned her about the more than R500 000 she allegedly received from then VBS investment broker Gundo Wealth Solutions to start a coffee shop business in Sandton in 2016.

The Hawks are investigating R349 million invested in VBS from 2016 to 2017 by Polokwane municipality under the leadership of Simelane, who was mayor.

Most members of the committee and political experts recommended the minister step down to allow the investigation to continue smoothly. In a summary of her prepared report on the matter, the minister emphasised that her position did not allow her to interfere with the investigation against her.

“I will not and cannot interfere with the National Prosecuting Authority (NPA) and the police who are investigating the case. That will never happen.”

In her opening address, Simelane denied the money she used to start a coffee shop business was part of the money allegedly stolen from VBS.

She said she repaid it with interest to the lender.

Advocate Glynnis Breytenbach, from the DA, expressed concern that a conflict of interest would negatively affect the investigations due to her proximity to the NPA and other law enforcement agencies probing the matter.

Breytenbach said: “I see the justice system as a pyramid and you are on the top of that pyramid.

“You will have an influence on the investigations. You cannot continue to sit in that chair.

“The way the money was flowing from VBS to the municipality and to the coffee shop was questionable.

“Why negotiate a loan with a service provider that was doing business with VBS while the bank was doing business with the government?”

MPs point out conflict of interest on VBS

Steven Swart, from the African Christian Democratic Party, said : “There is a conflict of interest. We are not saying you will abuse your power, but the possibility exists.

“This is a huge concern from the public and the media.”

The EFF’s Busisiwe Mkhwebane, a member of the committee, attacked Simelane for saying that she will not interfere with the investigation.

“You are the executive authority responsible for the NPA. There is a conflict of interest,” Mkhwebane said.

ActionSA parliamentary leader Athol Trollip said his party was not convinced that the minister had adequately answered the critical questions.

“The recent search and seizure warrant issued reinforces this belief. We await the public protector’s final determination next Wednesday on how she intends to deal with our complaint.

“ActionSA contends that today’s portfolio committee meeting was a talk shop and that this matter is best ventilated in an independent investigation by the public protector or in court.”

ALSO READ: Thembi Simelane denies ‘improper relationship’ with VBS fixer

Political analysts agree

Independent political analyst Goodenough Mashego said Simelane must step down “especially as she has lost public trust”.

Senior politician and former leader of the standing committee on public accounts Themba Godi said the minister would not last in her position “because many people are paying attention to those implicated in the VBS saga.

“Everybody is waiting to see how the president is going to act”.

Political analyst and NorthWest University Prof André Duvenhage believes that President Cyril Ramaphosa will come under pressure to act against her.

“I don’t think he has any other choice,” he added.