EFF calls for resignation of Minister Thembi Simelane as Minister of Justice following involvement in looting of VBS

27 August 2024

The Economic Freedom Fighters (EFF) call for the immediate resignation of Justice Minister Thembi Simelane following the revelations of her involvement in the looting of VBS Mutual Bank. Our Commander-in-Chief, Julius Malema, first alerted the nation to this shocking abuse of power during a press conference of the Progressive Caucus on the 180' of July, and it is now clear that Simelane has no place in the executive leadership of this country.

It has come to light that while serving as the Mayor of Polokwane in 2016, Simelane took a "commercial loan" of R575,600 from Gundo Wealth Solutions, a company that brokered unlawful investments of R349-million into VBS Mutual Bank on behalf of the Polokwane Municipality. Owned by Ralliom Razwinane, who is currently on trial for fraud and corruption in relation to this scandal, Gundo was part of a series of corrupt transactions rewarded with kickbacks amounting to R24.2-million for facilitating these illegal investments.

Gundo Wealth Solutions signed a three-year contract with the Polokwane Municipality to provide investment brokerage services—services that facilitated the unlawful channelling of millions into VBS. Shortly after securing two deposits totalling R130-million from the Polokwane Municipality in October 2016, VBS sent Razwinane a payment of RI million, who then funnelled R575,600 to Simelane through a company named Ricovert, which then owned the Silvanas Coffee Shop in Sandton.

This payment was then used by Simelane to purchase the coffee shop—a clear indicator of her direct benefit from the corrupt activities surrounding VBS. Simelane's actions are not merely unethical; they are criminal. The funds she received were corruptly siphoned from the very public coffers she was entrusted to protect.

As Mayor, Simelane played a pivotal role in enabling these unlawful deposits into VBS Mutual Bank—deposits that were part of a larger scheme involving multiple municipalities and state entities across South Africa. The VBS scandal saw over R2 billion looted, devastating the lives of thousands of ordinary South Africans, many of whom lost their life savings in this fraudulent scheme.

Furthermore, it has also been uncovered that Gundo Wealth Solutions was not a legitimate credit provider and had no legal basis to offer loans, exposing Simelane's "commercial loan" as a bribe thinly veiled as a business transaction. This scandal is not just a tale of financial mismanagement; it is a stark example of the rot within the ANC's leadership.

Simelane, while serving as Mayor, was entrusted with safeguarding public funds, yet she chose to engage in corrupt dealings, exploiting her position for personal gain. This is a clear pattem of behaviour—a track record of corruption that has now followed her into her role as Justice Minister.

As the current Minister of Justice, Simelane oversees critical institutions like the National Prosecuting Authority (NPA), which is currently investigating and prosecuting those involved in the collapse of VBS. This presents an untenable conflict of interest. How can the very person implicated in a scandal be expected to ensure a fair and thorough investigation into that same scandal? Simelane's continued presence in this role threatens the integrity of these investigations and undermines the pursuit of justice.

Minister Simelane's attempts to dismiss her actions as a legitimate commercial transaction are nothing but a flimsy cover-up. Her failure to adequately address the conflict of interest, her role in facilitating these illegal investments, and her subsequent attempts to downplay her involvement are indicative of someone who cannot be trusted with the responsibility of overseeing justice in our nation.

The EFF demands that Simelane step down immediately as Justice Minister. Her resignation is the only appropriate course of action to preserve the integrity of our justice system and to allow for an independent and impartial investigation into her actions. Furthermore, we call on law enforcement agencies to act swiftly in holding her accountable, ensuring that she faces the full consequences of her betrayal of public trust.

Issued by Leigh-Ann Mathys, National Spokesperson, EFF, 27 August 2024