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Thembi Simelane. Picture: Gallo Images/Sharon Seretlo
Thembi Simelane. Picture: Gallo Images/Sharon Seretlo

The justice & constitutional development ministry says minister Thembi Simelane “will give a full and detailed report” on allegations around her links to VBS Mutual Bank.

But she remained mum in parliament on Wednesday when she was expected to answer questions on the issue.

Instead, deputy justice minister Andries Nel spoke on her behalf, saying President Cyril Ramaphosa had called on her to account for her actions. “She will give her full co-operation,” Nel said during the parliamentary session.

Business Day reported on Tuesday that Simelane was consulting her lawyers and is expected to address allegations of kickbacks from VBS Mutual Bank, which imploded in 2018.

Freedom Under Law, the Ahmed Kathrada Foundation, Judges Matter and Defend Our Democracy are leading the charge for Simelane to explain as she is at the helm of state security agencies, including the National Prosecuting Authority.

Daily Maverick reported on Monday that Simelane, while serving as mayor of Polokwane, made two unlawful investments in VBS. The payments reportedly appeared to be linked to kickbacks paid in exchange for deposits the municipality made to the financial institution. 

It is further alleged that these bribes were paid to a company, which then used a portion of that money to pay towards a loan used for the purchase of a coffee shop by the minister.

The reports state that Simelane has claimed the transaction was a legitimate commercial loan that was fully repaid; however, neither the loan agreement nor proof of settlement of the loan have been provided.

During Wednesday’s parliamentary session, MPs called on Simelane to resign given that she is at the helm of state security agencies charged with prosecuting corruption, which remains a scourge in SA.

Nel said the department of justice was busy with a review of all state-capture cases, in line with the Zondo commission.

“The Independent Directorate is busy with 115 investigations... We are committed to combating corruption and never, never and never again should we revisit the tragic chapter of state capture in our national life,” he said.

Ramaphosa has formally requested a briefing from Simelane.  Presidency spokesperson Vincent Magwenya said Ramaphosa had noted with concern media reports containing allegations of corruption against Simelane.

“The president has requested a detailed report and briefing from the minister on the matter,” he said.

omarjeeh@businesslive.co.za

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