Justice Minister Thembi Simelane has denied claims that she benefited from a loan from the scandal-plagued VBS Mutual Bank.
The bank was declared insolvent and bankrupt and placed under curatorship in 2018.
Simelane spoke to Parliament’s portfolio committee on justice on Friday to address claims that, while serving as Polokwane mayor in 2016, she moved millions into the now-collapsed VBS Mutual Bank.
The claims stem from a loan of R575,600 that Simelane allegedly received from Gundo Wealth Solutions, a company owned by Ralliom Razwinane.
Gundo Wealth is accused of illegally helping invest R349 million from the Polokwane municipality into VBS.
The loan helped Simelane buy a coffee shop, and some suspect the payments were linked to kickbacks for the municipality’s large deposits into VBS.
Simelane denied having a corrupt relationship with Gundo Wealth.
“I did not have an improper relationship with a contractor employed by the municipality,” she said.
She explained that Gundo Wealth was not a municipality service provider and that the company was not paid municipal funds.
As a councillor, she said she wasn’t involved in deciding the municipality’s investments.
“Polokwane’s officials were involved in making the investment with VBS,” she said.
Simelane said she had repaid the loan.
“I requested a loan, a loan was advanced, and I repaid it,” she told the portfolio committee.
The Hawks recently searched the home of Simelane’s former assistant at the Polokwane municipality as part of their investigation.
They are looking into possible violations of financial laws and corruption linked to the R349 million investment with VBS.
Razwinane has been arrested and faces charges for accepting commissions from VBS.
He is accused of being involved in the R2 billion theft that caused the bank’s collapse in 2018.
Compiled by Staff Writer
Pictured above: Justice Minister Thembi Simelane.
Source: Thembi Simelane/X
