ActionSA's Urgent Complaint Against Justice Minister Over VBS Loan Scandal

In a dramatic turn of events, ActionSA has taken decisive action by filing an urgent complaint with the Public Protector against Justice Minister Thembi Simelane. This follows serious allegations linked to a loan from an accused VBS Bank investment broker.

Simelane has come under scrutiny over an alleged R500,000 loan from Gundo Wealth Solutions, a company implicated in unlawful investment activities. ActionSA has highlighted that, when Simelane served as mayor of Polokwane in 2016, this company brokered investments worth R349 million into VBS Mutual Bank on behalf of the Polokwane Municipality.

Adding fuel to the fire, Simelane is said to have used a "commercial loan" of R575,600 from the very same company, owned by Ralliom Razwinane, to finance the purchase of a coffee shop in the upmarket area of Sandton.

Razwinane's dealings as an investment broker for VBS Mutual Bank have raised questions, particularly as the Polokwane Municipality's hefty investment in the ill-fated bank was under his watch. Daily Maverick's expose reveals that the subsequent forensic investigations into the VBS collapse in March 2018 unearthed kickbacks amounting to R24.2 million, purportedly paid to Razwinane for his role in securing investments from various municipalities and state entities.

The allegations point heavily towards a breach of the Municipal Finance Management Act – treated as corrupt transactions by investigators. With Razwinane currently undergoing trial for charges of fraud, corruption, and money laundering, Simelane's connection to him casts a shadow over her role as Justice Minister.

Despite the gravity of these claims, Simelane has maintained her innocence, asserting that all transactions were conducted honorably. Nonetheless, the revelations have prompted ActionSA's Athol Trollip to question the integrity of an individual who now has significant influence over the Department of Justice and the National Prosecuting Authority (NPA) – the same institutions responsible for prosecuting VBS-related corruption.

The complaint is not merely a formality. ActionSA harbors the intention of urging President Cyril Ramaphosa to dismiss Simelane from her ministerial position should the Public Protector find substantial evidence of wrongdoing. The Justice Ministry, awaited to provide an official response, could see its spokesperson Tsekiso Machike's statement with significant anticipation.

The protracted shadow of the VBS scandal, with its complex web of alleged corruption and the potential involvement of key political figures, will undoubtedly continue to evoke national concern.