NEWS

VBS
|
September 02, 2024

Justice minister to face music over VBS loan

Minister Thembi Simelane will explain herself to the ANC and Parliament this week
Photo: DoJ

Justice Minister Thembi Simelane will explain her involvement in the now-defunct VBS Mutual Bank scandal before the ANC Integrity Commission. Simelane is also expected to do the same at the Justice and Constitutional Development Committee in Parliament on Friday over the half-million loan.


THE CONTROVERSIAL LOAN

 

Simelane is reported to have taken a R575.0000 loan from an investment broking company, Gundo Wealth Solutions, that illegally facilitated investments for municipalities with VBS. The company is owned by Ralliom Razwinane, who is currently on trial facing fraud and money laundering charges in relation to the VBS bank heist. It's alleged that Razwinane unlawfully facilitated investments between municipalities in Limpopo, Gauteng and North West. He allegedly received over R24 million in kickbacks from the bank for his role in the investments, which resulted in municipalities losing hundreds of millions of Rand in public funds. Polokwane Municipality, where Simelane was a mayor at the time, also invested R349 million with the bank. Simelane's loan was used to buy a coffee shop in Sandton, Johannesburg, and the money was paid directly to the owner of the shop.


HAULED BEFORE PARLIAMENT AND ANC INTEGRITY COMMISSION


Chairperson for Justice and Constitutional Development Committee Xola Nqola confirmed that the committee will engage Simelane on the VBS loan. "The committee has noted with grave concern the serious allegations in media reports regarding an alleged loan to the Minister. These types of allegations are damaging to the image that South Africa is trying to portray as a country ridding itself of any form of corruption,' Nqola said. He emphasised: "The committee thought it prudent to call the minister speedily to a meeting where she can take Parliament and South Africans into confidence regarding these allegations." Nqola said the meeting will take place on Friday in Parliament. Meanwhile, ANC secretary-general Fikile Mbalula said the minister will appear before the party's Integrity Commission to respond to the allegations. "We are expecting a full report from her in terms of what has been reported. She must report,' Mbalula said in an interview with eNCA.

Thank you! You'll receive your Newsletter soon!
Oops! Something went wrong while submitting the form.

By signing up, you agree to our Legal notice & to receive communications from Siyaya TV, which may include marketing promotions, advertisements and sponsored content.

MORE LIKE THIS