Former Polokwane mayor to answer on alleged VBS involvement
A report suggests Thembi Simelane secured a commercial loan, which was used to acquire a coffee shop in Sandton.
POLOKWANE – President Cyril Ramaphosa has requested a detailed report and briefing from former Polokwane Mayor, now justice and constitutional development minister, Thembi Simelane, regarding her alleged involvement in the VBS Mutual Bank scandal. At the time she served as mayor, Simelane still used her married surname, Nkadimeng.
An exclusive report by Daily Maverick claims that while serving as the mayor of Polokwane in 2016, Simelane took a loan exceeding R500 000 from a company involved in facilitating unlawful investments of R349m into VBS Mutual Bank by the Polokwane Municipality.
According to the report, Simelane secured a ‘commercial loan’ of R575 600 from Gundo Wealth Solutions, owned by Ralliom Razwinane, which she used to purchase a coffee shop in Sandton.
Presidential spokesperson Vincent Magwenya stated that the president has taken note of the media reports and the allegations linked to the minister.
“The media reports have connected the minister to funds allegedly received improperly from VBS Mutual Bank during her tenure as mayor of the Polokwane Municipality,” he confirmed.
No deadline has been set for the submission of the report and briefing.
Meanwhile, Polokwane Municipality spokesperson Thipa Selala distanced the municipality from the allegations, stating that while the municipality initially invested in VBS, the funds were withdrawn upon realising the investment was not in compliance with the Local Government: Municipal Finance Management Act 56 of 2003.
“This withdrawal occurred before the National Treasury issued its circular on the matter, and the municipality did not suffer any financial losses,” Selala told the Polokwane Observer.
Several attempts to reach Simelane or Razwinane for comment have been unsuccessful.
