President Ramaphosa Demands Explanation from Justice Minister Simelane Over VBS Scandal

#Finance

#South Africa
President Ramaphosa Demands Explanation from Justice Minister Simelane Over VBS Scandal

Loveworld / 16 mins

August 29, 2024

2 min read

President Ramaphosa Demands Explanation from Justice Minister Simelane Over VBS Scandal
South African President Cyril Ramaphosa has formally requested Justice Minister Thembi Simelane to provide a comprehensive explanation regarding her involvement in the VBS Mutual Bank corruption scandal. The call for clarification comes amid mounting scrutiny and allegations of conflict of interest related to Simelane’s past actions.
Key Points:

Background: The controversy centers on a loan Simelane received from Gundo Wealth Solutions, a company linked to Ralliom Razwinane, who is currently facing charges for fraud and corruption related to VBS. Simelane, while serving as mayor of Polokwane, took a loan of R575,600 from this company to purchase a coffee shop in Sandton.
Forensic Findings: Investigations revealed that VBS paid a kickback of R24.2 million to Razwinane for facilitating investments from municipalities and state entities, including Polokwane. This transaction allegedly breached the Municipal Finance Management Act.
Political and Public Reaction: The allegations have prompted significant concern from various political parties and civil society groups. The Democratic Alliance (DA), ActionSA, and GOOD have all called for accountability, with some demanding that Simelane appear before the Portfolio Committee on Justice and Constitutional Development, while others urge her removal from office. The Economic Freedom Fighters (EFF) have also called for her resignation.
Public Statement: President Ramaphosa’s spokesperson, Vincent Magwenya, expressed concern over the media reports linking Simelane to the scandal and emphasized the importance of transparency. Freedom Under Law (FUL), the Ahmed Kathrada Foundation, Judges Matter, and Defend Our Democracy have also criticized Simelane’s lack of transparency, highlighting the need for her to fully address the allegations.
Current Status: The Presidency is awaiting a detailed briefing from Simelane. She has claimed the loan was legitimate and fully repaid, but has yet to provide the loan agreement or proof of settlement.

The situation underscores ongoing issues of governance and public trust in South Africa, as the country grapples with the implications of corruption allegations involving high-profile officials.