Following allegations that Minister of Justice Thembi Simelane was involved in the VBS bank scandal, President Cyril Ramaphosa requested a comprehensive report and briefing from the Minister. Image: News24
(The Post News)- Thembi Simelane, the minister of justice, has been requested to provide a comprehensive report and briefing by President Cyril Ramaphosa in response to claims that he borrowed more than 500, 000 rands from a business connected to the currently non-functional VBS Bank.
The Presidency’s office issued a media statement on Wednesday morning, stating that Ramaphosa is concerned about media reports outlining corruption allegations against Simelane, which have linked her to funds believed to have been fraudulently obtained from the VBS Mutual Bank during her term as mayor of Polokwane Municipality.
As a result, the president has demanded that she produce a comprehensive report and briefing on the situation.
According to an article written by Jan Gerber, a News24 journalist, a joint investigation by News24 and Daily Maverick discovered that Simelane had bought a coffee shop in Sandton using a “commercial loan” of R575,600 from Gundo Wealth Solutions, which Ralliom Razwinane owns.
Gerber’s article further stated that the Mayor of Polokwane was Simelane when the municipality illegally invested 349 million rands in VBS, which was brokered by Gundo Wealth Solutions, and a forensic investigation revealed that VBS paid Razwinane a kickback of R24,2 million for brokering investments from various municipalities and state organizations through supposedly corrupt transactions and violations of the Municipal Finance Management Act.
Currently, Razwinane is on trial, facing charges of fraud, corruption, and money laundering for the role he played as a commission’s agent connecting municipalities, particularly Polokwane Municipality, to VBS.In response to the allegations, Simelane confirmed that she obtained the loan to help her purchase her coffee shop and described the transaction as a legitimate “commercial loan” that she fully repaid. According to her, the transaction was entirely legal.
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