Justice Minister Thembi Simelane is today expected to appear before the ANC integrity commission amid allegations that her confidential submission to the committee was leaked to media.
Simelane voluntarily asked for an audience with the commission in order to clear her name. This was following allegations that she received gratuitous payment from corruption-accused Gundo Wealth Solutions.
Gundo Wealth Solutions were the financial advisor for Polokwane Municipality at the time Simelane was the mayor. And the municipality invested R349-million to VBS Mutual Bank, which was paid in four tranches.
Wants to clear her name amid media reports
Simelane is accused of receiving gratuitous payments of R575, 600 from Gundo Wealth Solutions.
The minister has maintained that the money was a loan. She said she paid it back in three instalments of R283, 333, and that she paid it back with interests.
The minister has maintained that the money was a loan. She said she paid it back in three instalments of R283, 333, and that she paid it back with interests.
Sunday World understands that Simelane’s confidential submission, which was sent to the office of President Cyril Ramaphosa and the commission’s secretariat, was leaked to the media.
Simelane’s spokesperson, Tsekiso Machike, yesterday confirmed the matter. He said that the minister “was disturbed and worried about the leakage of her confidential submission”.
“We are disturbed and worried that the minister has mandated with questions from confidential documents that were only shared with two institutions. …These are the office of the president and the ANC integrity commission.
“The confidential documents, from which the questions from the media come from, weren’t even shared with parliament. And this is done to understand the minister’s credibility and the commission’s integrity.” Machike said.
Wrote to the integrity commission
Simelane wants to clear her name before the commission following allegations that she “took a half a million from accused VBS broker”.
She wrote to the integrity commission on August 27 and asked for an audience. This in order to take them “into confidence about the historical facts of what happened with the transaction in question”.
The following day, on August 28, the commission asked Simelane to provide it with all the relevant documentation. These include a copy of questions and media inquiries. It requested this through its secretariat. The commission needed this before the engagement so that the commissioners are able to prepare themselves.
Machike said their worry comes after the minister received questions, from media. These were from the same relevant documents that she submitted to the commission.
“We are very disturbed and worried about the leakage of her confidential submission. …These were submitted in good faith and in the spirit of transparency. And now the minister gets questions from the media, about her confidential submission. Before she even appears before the commission.” He explained.
Trial by media
Machike refused to give more details on which part of Simelane’s confidential submission was leaked to the media.
“They just want to trial the minister by media and court of public opinion. Instead of getting to the bottom of this matter.” Machike said.
Ironically, in her letter to the integrity commission, Simelane said it was “important to clarify so that there is no fertilised ground to sully my character as the deployee of the ANC serving in cabinet, and subsequently bring the name of the organisation into disrepute”.
“There has been a concerted effort to try and draw my name into the mud. And the first of these attacks came through questions linking me to a company I registered almost two decades ago.
“It was said through the media inquiries that the company has been actively doing business. And I have not declared such to parliament,” Simelane wrote.
Simelane added that she told the journalist that her company “never even opened a bank account, let alone to do business”.
“It was strange that the digging into my personal affairs had went that far. As fate would have it, this was just the beginning.”
Special letter to the president
Before writing to the commission, Simelane also wrote Ramaphosa. In the letter she said that she had a R575,600 loan with Gundo Wealth Solutions.
The minister told the president that she paid “Gundo Wealth Solutions an amount of R849 999. The capital amount was R575 600, and R274 399 was interest on the loaned amount”.
Simelane also informed the president that Polokwane Municipality did invest R349-million into VBS mutual bank.
“The municipality also made significant other investments with other institutions. These are Standard Bank, Sanlam, Nedbank, Liberty, ABSA and Investec, to name but a few.
“The municipality subsequently reviewed its investments and withdrew all its investments from VBS Mutual Bank. Together with interest on investment, and did not lose a single cent, following its collapse,” Simelane wrote.
Simelane said Gundo Wealth Solutions was appointed by the municipality as investment manager. This was under strict conditions that they “wouldn’t be paid an administration fee nor any other fees for the advisory services”.
Gundo Wealth Solutions received no commission
“Gundo Wealth Solutions was not a typical contractor of the municipality. In the strict sense of the word, in that municipality did not pay Gundo Wealth Solutions for services tendered.”
Simelane also informed the president that she saw a business opportunity to own a coffee shop. She established a company, T5 Investment Group, in July 2016. This was as a “special purpose vehicle for understanding the business of a coffee shop”.
She initially wanted to withdraw money from her retirement savings and invest it in the coffee shop business. But she was advised against it. This was due to the “levies, surcharge, taxation and penalties which would arise on withdrawal of the retirement savings”.
Simelane said she then approached Gundo Wealth Solutions for a R575, 600 loan. It was finalised and signed with her company, T5 Investments Group, on September 30, 2016.
She informed the president that she repaid her loan to Gundo Wealth Solutions in full plus interests.
She informed the president that she repaid her loan to Gundo Wealth Solutions in full plus interests.
She also submitted the proof of her loan repayment to the president. The first payment was on October 9, 2020. Second instalment on November 12, 2020 and the last payment on January 7, 2021.
Loan repaid in full, with interest
“T5 Investments Group repaid Gundo Wealth Solutions an amount of R849 999. For which R575, 600 was the capital amount outstanding. And amount of R274, 399 was interest on the loaned amount,” she explained.
Simelane strongly denied that there was any conflict of interest. The municipality made its first initial investment with VBS Mutual Bank, “without any involvement on my part”. This was on October 12, 2016. It was after her loan agreement with Gundo Wealth Solutions was already signed on September 30 of the same year.
Simelane added that her relationship with Gundo Wealth Solutions ended on January 7, 2021. This was when she paid her last instalment.
