ActionSA has filed an urgent complaint to the Public Protector against the Minister of Justice, Thembi Simelane, following reports that she took a loan from the investment broking company that facilitated the unlawful investment of R349 million from the Polokwane Municipality in Limpopo. Simelane was the mayor at the time of the transaction and it's alleged that she took the loan to purchase a restaurant in Sandton in 2016.

THE LOAN

According to a report by News24, the Minister received R575 600 from Gundo Wealth Solutions, from the company owned by Ralliom Razwinane, who is currently on trial for fraud and money laundering related to his role in facilitating connections and investments between most Limpopo municipalities and the now defunct VBS Bank. The loan was allegedly paid directly to the owner of a coffee shop. A forensic investigation found that VBS rewarded Razwinane with kickbacks of more than R24 million for brokering investments from various municipalities and state entities. It found that 14 municipalities that invested in the now-defunct VBS Bank did so irregularly and unlawfully. In 2021, the then Public Protector, Busisiwe Mkhwebane, found that 14 municipalities from Limpopo, North West and Gauteng invested irregularly and unlawfully public funds with VBS. This resulted in the municipalities losing hundreds of millions of Rand in public funds. 

DEMANDING ANSWERS

In a statement today, ActionSA said it is concerning that Simelane, who now oversees the Department of Justice and who has significant influence over the National Prosecuting Authority, is responsible for the institution tasked with prosecuting corruption, including the VBS matter. "ActionSA believes this is a clear case of an obvious conflict of interest, with the integrity of the justice system under her stewardship at stake. It is simply untenable that the very person entrusted with ensuring justice is upheld in South Africa may herself be compromised, which, in turn, casts a shadow over the NPA's ability to carry out its mandate impartially and without favour," the party said in a statement. "ActionSA has therefore approached the Public Protector to urgently initiate an investigation into this matter and to probe the potential violation of the Executive Members' Ethics Act. We simply cannot afford to overlook this issue, given the implications for our justice system. What's more is the fact that everyone involved in the looting of VBS Bank needs to be prosecuted, regardless of their political affiliation." The DA has also entered the fray and said they have submitted a request to the chair of the Justice Parliamentary Portfolio for Simelane to appear before the portfolio to answer the allegations. "These allegations raise serious questions about the Minister's integrity and her ability to fulfil the critical role of upholding justice in South Africa. We demand that the NPA continues to exercise its mandate without fear, favour, or prejudice, despite the allegations that have surfaced against the person who oversees the body," the party said in a statement. Minister Simelane spokesperson Tsekiso Machike said the department will respond to our questions as soon as they have determined an appropriate cause of action on the matter.

This article has been updated with a comment from the Department of Justice and Constitutional Development .