Thembi Simelane needs to be removed Intensify controversial VBS loan.
The political landscape in South Africa is once again embroiled in controversy as opposition parties, including the Democratic Alliance (DA), Congress of the People (COPE), and the Economic Freedom Fighters (EFF), unite in their demand for the immediate removal of Justice and Constitutional Development Minister Thembi Simelane. The call comes in the wake of allegations that Simelane received a controversial loan from Gundo Wealth Solutions, a company closely linked to the notorious VBS Mutual Bank scandal.
Simelane, who served as the mayor of Polokwane Municipality from 2014 to 2021 before her appointment as justice minister in June this year, is accused of securing a loan of R575,600 from Gundo Wealth Solutions in 2016. The funds were reportedly used to purchase a coffee shop in Sandton, raising serious concerns about potential conflicts of interest and the legality of the transaction.
The loan, facilitated by Gundo Wealth Solutions, a company owned by Ralliom Razwinane, has sparked outrage due to its connection to the unlawful investments of municipal funds into the now-defunct VBS Mutual Bank during Simelane’s tenure as mayor. The VBS Mutual Bank scandal, which saw the looting of millions of rands from various municipalities, including Polokwane, led to significant financial losses for many South Africans, particularly those from poor and marginalized communities.
Despite the allegations, Simelane has maintained her innocence, stating in an investigative report by Daily Maverick that “the transaction was completely above board.” However, the shadow of the VBS scandal continues to loom large over her, especially as Razwinane, the owner of Gundo Wealth Solutions, is currently on trial for fraud, corruption, and money laundering.
The political fallout from these revelations has been swift and severe. The DA, through its justice and constitutional development spokesperson Glynnis Breytenbach, has expressed deep concern over the disturbing allegations. The party has formally requested that Simelane appear before the Justice Parliamentary Portfolio Committee to address these claims and explain how she intends to manage the apparent conflict of interest between her role as Minister of Justice and the ongoing investigations by the National Prosecuting Authority (NPA) into the VBS scandal.
“The VBS looting has disproportionately affected the poor, marginalized, and vulnerable citizens who trusted the bank with their life savings, only to lose everything due to the greed of corrupt politicians,” Breytenbach stated. “Justice has not been served, and the victims continue to suffer in silence.”
COPE’s acting national chairperson, Pake Dikgetsi, has also weighed in, urging President Cyril Ramaphosa to act swiftly by either suspending or demanding the resignation of Simelane. Dikgetsi further called on law enforcement agencies to arrest Simelane without delay on charges of corruption and money laundering, emphasizing that any inaction would undermine the government’s commitment to combating corruption.
Echoing these sentiments, the EFF’s national spokesperson, Leigh-Ann Mathys, argued that Simelane’s continued position as Minister of Justice poses an untenable conflict of interest. Mathys highlighted that Simelane, who oversees the NPA, cannot be expected to ensure a fair investigation into a scandal in which she is personally implicated.
In addition to these calls, ActionSA has also entered the fray, with its parliamentary caucus leader, Athol Trollip, confirming that the party has filed an urgent complaint with the Public Protector. Trollip emphasized that ActionSA would be formally notifying President Ramaphosa of their deep dissatisfaction with the current situation.
As pressure mounts from various quarters, the future of Minister Thembi Simelane remains uncertain. The demands for her removal have ignited a fierce debate on social media and beyond, reflecting the growing public frustration with corruption and the slow pace of justice in South Africa.
