Johannesburg – The Department of Justice and Constitutional Development on Friday backed underfire Justice Minister Thembi Simelane, saying she has done nothing wrong.
The newly appointed Justice Minister has come under the spotlight following reports that, while she was Polokwane’s mayor in 2016, she took a loan of about half a million rand from Gundo Wealth Solutions, owned by Ralliom Razwinane.
A forensic probe later found that the now defunct VBS had paid Razwinane R24.2 million for brokering investments from various municipalities and state entities.
Razwinane is on trial for fraud, corruption, and money laundering.
Minister Simelane, who denies any wrongdoing, appeared before the Portfolio Committee on Justice and Constitutional Development earlier Friday, (6 September 2024), to address concerns related to VBS Mutual Bank.
The minister admitted that she took a loan from Gundo Wealth Solutions to purchase a coffee shop in Sandton.
The loan was paid directly to the owner of a coffee shop in Sandton.
The minister said she paid off the loan in three tranches.
In a statement, the department said: “Minister Simelane remains steadfast in her commitment to ethical governance and transparency.
“She has consistently subjected herself to public scrutiny and reaffirms her dedication to accountability.”
Apart from the clarification of details around the loan, Justice Minister Simelane was quizzed about a possible conflict of interest.
Responding to insinuations of a conflict of interest, the department said: “During her appearance, Minister Simelane clarified that she is not involved in prosecutorial decisions made by the National Prosecuting Authority (NPA).”
The department explained that decisions regarding prosecutions are independently handled by the NPA and the “Minister’s role does not extend to this process”.
The department added: “Her appearance before the Committee underscored her readiness to cooperate fully with any process seeking clarity on this matter.
“The Minister highlighted her proactive measures, including instructing the withdrawal of municipal funds from VBS two months prior to the National Treasury’s advisory on investment irregularities.
“She also noted that the services of Gundo Wealth Solutions, used in this process, were provided at no cost to the municipality.
“No payments were made to Gundo Wealth Solutions, and Minister Simelane asserts that she received no improper benefits, with no conflict of interest involved.”
The department said Minister Simelane “firmly denies any allegations of wrongdoing” and is committed to cooperating fully with all inquiries.
“She has repaid the capital investment in three installments from her personal FNB account, including over R250 000 in interest,” the department said.
“The Minister has assured the portfolio committee of the existence of proof of payment.
“Minister Simelane is scheduled to meet President Cyril Ramaphosa on a date to be announced to provide further details on the issue.”
