Justice Minister Simelane Defends Herself Against VBS Allegations in Parliamentary Committee

Amid a swirl of allegations connecting her to the VBS Mutual Bank scandal, Justice Minister Thembi Simelane appeared before Parliament's Portfolio Committee on Justice and Constitutional Development to state her case. Last week's allegations implied Simelane, during her tenure as Polokwane Mayor, received an improper loan from a company with VBS ties while the bank experienced its infamous meltdown.

Simelane vehemently denied any misconduct, asserting her role as mayor did not clash with procurement processes which are exclusively managed by municipal executives. Gundo Wealth, the service provider in question, was appointed through standard council committees, and Simelane insists she received no improper benefits from them.

Clarifying the conflict of interest concerns between her ministerial position and the National Prosecuting Authority (NPA) – currently examining the VBS saga – Simelane emphasised the independence of the NPA's decision-making process from her department's directives.

The loan, according to the Minister, was obtained from Gundo for a personal business venture aimed at securing financial stability post her public service career—a coffee shop intended to provide for her and her family. Addressing concerns of conflict, Simelane underscored the loan's complete repayment in three instalments and negated any improper conduct on her part. The loan choice was prompted by high taxation on her retirement savings withdrawal, with advice from Gundo against such action.

As VBS's troubles became public, Minister Simelane recounts steps already taken to comply with National Treasury's directives, explicitly cautioning municipalities against banking with mutual banks. She told the committee of her proactive measures, directing the withdrawal of investments from VBS even before Treasury's intervention.

Simelane’s engagement in a Treasury-led review and ensuing corrective measures post the unraveling of the VBS debacle signifies her commitment to sound financial governance. She complied with the sanctions by enrolling in a Municipal Management Programme recommended by the Treasury, which she pursued earnestly and completed as Deputy Minister.

With this testimony, Minister Simelane maintains her stance: her dealings with VBS bore no illegitimacy, emphasizing once more that the loan obtained was proper and repaid in observance of due process.