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

The Council for the Advancement of the SA Constitution (Casac) has called on President Cyril Ramaphosa to suspend justice & constitutional development minister Thembi Simelane for her failure to account for allegations around her link to VBS Mutual Bank.

“It should have been the simplest thing for her to provide proof of loan repayments. Instead, she has certainly been evasive,” Casac executive director Lawson Naidoo said on Thursday.

“The question is what is Ramaphosa doing as president? At the very least she should be suspended, so that he shows that we are embarking on a new dispensation where corruption is not tolerated,” he said, adding that each day that passes leads to more damage to Ramaphosa’s credibility.

News24 and Daily Maverick reported this week that Simelane may have improperly received funds from VBS, which imploded in 2018.

The reports allege Simelane received a loan exceeding R500,000 from a company allegedly involved in illicit transactions with VBS. Simelane, while serving as mayor of Polokwane, allegedly made two unlawful investments in VBS on behalf of the municipality.

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, but neither the loan agreement nor proof of settlement of the loan have been provided.

VBS is widely accused of bribing politicians in some of SA’s poorest municipalities in Limpopo, convincing them to divert government budgets in exchange for cash and gifts. 

Freedom Under Law, the Ahmed Kathrada Foundation, Judges Matter and Defend Our Democracy previously called on Simelene to account for the allegations. As justice & constitutional development minister, Simelane is at the helm of state security agencies, including the National Prosecuting Authority, which resulted in a conflict of interest.

Simelene was evasive in parliament on Wednesday, refusing to answer direct questions, while her office said only that she would give a full and detailed report to Ramaphosa.

The ANC’s government of national unity partners, including the DA, have already called for Simelane to appear before parliament and the EFF wants her immediate resignation.

“At the very least, the minister needs to be brought before parliament to account for what measures she intends to put in place to manage the glaring conflict of interest between herself as minister of justice & constitutional development and her role involving the NPA , which must surely be investigating her and this transaction,” DA spokesperson on justice Glynnis Breytenbach said in a statement.

The presidency responded by asking that Ramaphosa be given time to deal with the matter.

Ramaphosa formally requested a briefing from Simelane on Tuesday.

omarjeeh@businesslive.co.za

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