Political parties have voiced concerns that Minister of Justice Thembi Simelane could potentially manipulate the investigation into fraud and corruption relating to the VBS Mutual Bank.
The red berets are calling for Simelane’s resignation after it emerged that she had dealings with the bank. This is amid serious corruption allegations connecting her to the VBS Mutual Bank looting scandal.
The EFF is worried that Simelane could leverage her influence to avoid accountability.
R575,600 ‘loan’ received
The party’s call for her removal stems from claims that Simelane received R575,600 from Gundo Wealth Solutions. This was while she was serving as a mayor of Polokwane Municipality.
The EFF believes that Simelane is not fit to be part of South Africa’s leadership. They have held this view since the matter was raised at the Progressive Caucus briefing in July.
It is believed that she could not serve in the national executive if she is implicated in corrupt activities. This means she, during her time as mayor, engaged in corrupt dealings and exploited her position for personal gain.
Leigh-Ann Mathys, EFF national spokesperson, gave details on the matter. She said Gundo Wealth Solutions had signed a three-year contract with Polokwane Municipality. The contract was to provide investment brokerage services. But these rather facilitated the unlawful channelling of millions into VBS.
“It has come to light that while serving as the mayor of Polokwane in 2016, Simelane took a ‘commercial loan’. [She took a loan of] R575,600 from Gundo Wealth Solutions. It is a company that brokered unlawful investments of R349-million into VBS Mutual Bank. This was done on behalf of the Polokwane Municipality.
Loan company linked to VBS bank
“Owned by Ralliom Razwinane, who is currently on trial for fraud and corruption in relation to this scandal, Gundo was part of a series of corrupt transactions rewarded with kickbacks amounting to R24.2-million. The monies were for facilitating these illegal investments,” said Mathys.
She said Gundo Wealth Solutions could not legally offer loans. This considering that it was not a legitimate credit provider, arguing that the loan was a bribe.
Mathys also expressed concern that Simelane’s continued presence in her role could undermine investigations. She was referring to ongoing investigations into the corruption scandal.
“Simelane’s continued presence in this role threatens the integrity of these investigations. It undermines the pursuit of justice,” said Mathys.
Athol Trollip, ActionSA Parliamentary leader, wrote to President Cyril Ramaphosa about the matter. He requested for Public Protector (PP) Kholeka Gcaleka’s urgent attention to the alleged corruption by the Justice Minister.
ActionSA concerned over potential influence on NPA
Trollip raised concerns that Simelane was overseeing the Department of Justice. This meant she had an influence over the National Prosecuting Authority (NPA). He requested that the PP probe if this would not be considered conflict of interest or violations of ethics codes.
ActionSA also wishes to know if there have been breaches of relevant legislation, regulations, and codes. This regarding the minister’s conduct and suspicious financial dealings.
Integrity of the justice system
“I am of the view that the integrity of our justice system is at stake if the person tasked with upholding the law is potentially compromised by involvement in unlawful transactions linked to one of the most egregious corruption scandals that stole from the most vulnerable.
“Consequently, I am raising this issue as it demands immediate and thorough investigation. This to preserve the credibility and impartiality of our justice system,” reads the letter in part.
ActionSA has also pledged to ensure the integrity of the justice system. To also oppose any individuals implicated in corruption from holding significant positions.
