Knives out for Simelane over VBS ‘loan’
The revelation that Justice Minister Thembi Simelane appears to have received money from someone intimately involved with the VBS scandal is likely to lead to questions about the motives behind every decision she makes.
And the Daily Maverick notes that it may pose important tests for President Cyril Ramaphosa, his coalition partners, and both the EFF and MKP.
As previously reported, Simelane took a loan of R575 000 from a company that brokered unlawful investments into VBS Mutual Bank by the Polokwane Municipality while she was mayor of the city in 2016.
She used the ‘commercial loan’ from Gundo Wealth Solutions owned by Ralliom Razwinane to purchase a coffee shop in Sandton.
A joint investigation by Daily Maverick and News24, based on bank statements, indictments, former VBS bank chairperson Tshifhiwa Matodzi’s plea deal, a report by Advocate Terry Motau and unpublished reports from investigators Crowe Forensics and law firm BDO, suggests that the transactions are questionable.
Simelane claims the money was a loan and that she has paid it back but, as yet, has provided no proof of this.
In recent months, the collapse of VBS received renewed attention after its former chairperson, Tshifhiwa Matodzi, described as the kingpin of the fraudulent scheme, concluded a plea deal in terms of which he agreed to be a State witness.
He pleaded guilty to 33 counts of theft, fraud, racketeering and money laundering and will spend an effective 15 years behind bars.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
