Minister of justice & constitutional development Thembi Simelane appeared before the parliamentary portfolio committee on justice on Friday, where she was grilled about her alleged involvement in the VBS Mutual Bank scandal.
It seems her explanation to the committee was not convincing enough to make the matter go away, and now pressure is mounting on President Cyril Ramaphosa to act against Simelane, who admitted to soliciting a loan from a company that facilitated payments from the Polokwane municipality to the now defunct VBS Bank.
Simelane was mayor of Polokwane when the municipality invested more than R300m in VBS. The money was later withdrawn. At the time of the investment, Simelane had received a R575,000 loan from Gundo Wealth Solutions, the company that facilitated the investment. Gundo owner Ralliom Razwinane is on trial for corruption related to the investment. Simelane bought a coffee shop in Sandton with the money.
Calls are growing for the minister to step aside. For the ANC, the question is whether Simelane’s retention advances the renewal it claims to be pursuing or damages its standing in the GNU.
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