Thembi Simelane, who succeeded Ronald Lamola as justice minister when President Cyril Ramaphosa formed his government of national unity, is regarded as one of the rising stars in the ANC and the government. Hers is an important post, especially given that a series of high-profile scandals have opened some of her present and former comrades to possible criminal prosecution. It is vital she has no conflicts of interest in these matters, real or perceived.
So it is regrettable that her appearance in parliament this week to answer questions about a R575,000 “loan” she obtained from a service provider to the Polokwane municipality, where she previously served as mayor, did little to calm fears about her integrity and lack of suitability for this important position.
She claims to have paid back the loan taken out in 2016 — along with nearly 50% interest totalling R274,399. The money, she said, was to purchase a coffee shop in Sandton before the Covid lockdown. How the minister was able to repay the loan plus interest is open to speculation. Apart from the quantum of money involved, the timing of the repayment also raises questions in that it apparently coincided with the release of the damning Motau report on corrupt activities involving VBS Mutual Bank (VBS) and a string of local municipalities that were tricked into investing public funds with the bank.
If any wrongdoing has been committed by Simelane, her repaying the money may be a mitigating circumstance. However, it cannot possibly absolve her of the original malfeasance
Recent media reports revealed Simelane was the recipient of a loan from a company — Gundo Wealth Solutions — that facilitated the investment of more than R300m from the Polokwane municipality into VBS. Simelane admits having received more than R500,000 from Gundo Wealth — which she used to purchase her coffee shop. Gundo Wealth owner Ralliom Razwinane is already on trial for corruption related to the VBS transactions.
Speculation about the minister and the loan will continue to rage until she comes clean about the whole affair. Unfortunately for her, that may spell the end of her career as a politician, at least in its current iteration.
It is plainly not enough for her to plead she has paid back the money to her creditor, which is not a licensed financial services provider. If any wrongdoing has been committed by Simelane, her repaying the money may be a mitigating circumstance. However, it cannot possibly absolve her of the original malfeasance.
While the minister was giving MPs the runaround in parliament, notably failing to produce the documentation she claims will get her off the hook, the Hawks were raiding the offices of the Polokwane municipality. That it was an unannounced, secret raid suggests there is fear evidence could be destroyed, and also reveals co-operation in probing the matter is not a given.
Ramaphosa requested a meeting with her, which has apparently taken place, though we have yet to hear the upshot. Given the president’s history of prevaricating and delaying big decisions, we shouldn’t expect an outcome any time soon — which leaves us all plenty of time to wonder in amazement at Ramaphosa’s decision to elevate her to this important post in the GNU. Is it possible the president is so out of the loop with regard to the VBS matter he had no inkling she was a skeleton about to burst out of the cupboard? What does it say about the quality of his appointments generally if so little thought appears to have gone into this one?
For the ANC, also struggling to escape its VBS woes and the general perception of corruption in its ranks, the question is whether Simelane’s retention advances the renewal it claims to be pursuing. The party’s failure to take action against her damages its standing in the GNU, especially when it is viewed in contradistinction with the conduct of opposition MPs going out of their way to impress.
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