SOUTH Africa’s Minister of Justice and Constitutional Development, Thembi Simelane, has been summoned by her boss, the President, to explain herself after revelations that she received a R500 000 loan from a company implicated in the VBS Mutual Bank scandal.
A statement from the SA Presidency said: “President Cyril Ramaphosa has noted with concern media reports containing allegations of corruption against the Minister of Justice and Constitutional Development, Thembi Simelane. The media reports have linked the Minister with monies alleged to have been received improperly from the VBS Mutual Bank during her tenure as Mayor of the Polokwane Municipality. The President has requested a detailed report and briefing from the Minister on the matter.”
Action from Ramaphosa follows that of several prominent civil society organizations, including Freedom Under Law (FUL), The Ahmed Kathrada Foundation, Judges Matter, and Defend Our Democracy, who have issued a joint statement expressing “concern” over media reports linking Minister Simelane to unlawful investments in VBS Mutual Bank during her tenure as mayor of Polokwane in 2016.
According to these reports, the Polokwane Municipality made two unlawful investments into VBS Mutual Bank while Simelane was mayor. These investments are allegedly connected to kickbacks paid to a company that subsequently used a significant portion of the funds to finance a loan for Simelane’s purchase of a coffee shop in Sandton, Johannesburg.
Minister Simelane has maintained that the transaction was a “legitimate commercial loan” that has been fully repaid. However, the civil society groups note that neither the loan agreement nor proof of settlement has been provided to substantiate this claim.
The organizations argue that even if the loan was settled, questions remain about the appropriateness of the Minister entering into such an arrangement, given its apparent connection to unlawful municipal deposits into VBS bank during her mayoral term.
“It is crucial that the Minister responds fully and transparently to these allegations,” the statement reads. “Perceptions of corruption and conflicts of interest cause significant harm to public confidence in governance institutions and the rule of law.”
The groups emphasize the critical nature of Minister Simelane’s role, which includes political responsibility for key law enforcement agencies involved in anti-corruption efforts and the investigation of the VBS bank collapse. They also point out that she is set to take up a position on the Judicial Service Commission in early October.
“There can thus be no question marks over the Minister’s probity and ethics,” the statement asserts.
The organisations draw attention to South Africa’s recent history of compromised individuals negatively impacting the justice sector and the broader effects of corruption on governance institutions. They call for Minister Simelane to “account fully for her involvement in the incident,” stating that it would be “untenable for such serious allegations against a Minister in such an important portfolio to remain unanswered.”
As the political storm intensifies, all eyes are now on Minister Simelane and how she will address these allegations that threaten to undermine public trust in her office and the broader justice system.
