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Calls for Minister Simelane to respond transparently to reported VBS involvement

Sameera Casmod | sameerac@radioislam.co.za
28 August 2024 | 10:10 a.m. SAST
1-minute read

Image: Sethembiso Zulu/EWN

Four civil society organisations have called for the Minister of Justice and Constitutional Development Thembi Simelane to tell the truth about her reported connection to unlawful investments in VBS Mutual Bank in 2016.

At the time, Simelane was the mayor of Polokwane when the municipality wrongfully invested R349 million into VBS and she allegedly received kickbacks towards a loan of R575 600 which she used to purchase a coffee shop in Sandton.

The Ahmed Kathrada Foundation, Judges Matter, Defend Our Democracy and Freedom Under Law (FUL) have said that Minister should respond transparently to the allegations.

Speaking to Radio Islam International, Nishan Bolton, the executive director at the Ahmed Kathrada Foundation, said that municipalities were legally barred from investing into VBS.

However, the municipality invested millions through Gundo Wealth Solutions, which received a fee for brokering the deal. Thereafter, Gundo, owned by Ralliom Razwinane, paid the R575 600 to purchase the coffee shop, which is owned by Minister Simelane.

“It is quite clear that this could have been a kickback for support from the Minister as Mayor then for its investment into VBS,” Bolton said.

Simelane was appointed as justice minister in July, and now supervises the National Prosecuting Authority (NPA), which is currently investigating and prosecuting crimes associated with the VBS scandal.

“The whole VBS investigation is under the jurisdiction of the minister. So, the Minister is now compromised over the areas of work that she is involved in. It is a huge issue of public trust and confidence,” Bolton said.

Minister Simelane is required to prove the legitimacy of the loan by providing the loan agreement and proof of settlement of the loan.

Listen to the full interview on Sabaahul Muslim with Moulana Sulaimaan Ravat.

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