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Ramaphosa Orders Simelane to Account for VBS corruption allegations

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Johnathan Paoli

President Cyril Ramaphosa has requested a detailed report and briefing from the Minister of Justice and Constitutional Development, Thembi Simelane, following her implication in the VBS corruption scandal.

Spokesperson for the President, Vincent Magwenya, made the announcement on Wednesday morning and said Ramaphosa noted with concern media reports containing allegations of corruption against the minister.

Magwenya said the media reports have linked Simelane with funds allegedly received improperly from the VBS Mutual Bank, during her tenure as the Executive Mayor of the Polokwane Municipality.

This comes on the heels of civil society organisations and political parties calling for Simelane to urgently clarify the allegations.

The organisations Freedom Under Law, Ahmed Kathrada Foundation, Judges Matter and Defend Our Democracy have all expressed concerns over the revelation of Simelane’s involvement with VBS loans.

The Economic Freedom Fighters (EFF) have called for her resignation, while ActionSA filed an urgent complaint with the Public Protector.

The Democratic Alliance submitted a request to the chair of the Justice Portfolio committee, demanding the minister answer the allegations of impropriety.

According to reports, Simelane allegedly took a R575 600 “commercial loan” from Gundo Wealth Solutions, owned by Rallion Razwinane, and further brokered unlawful investments of R349 million into the now defunct VBS bank by the Polokwane Municipality under her watch in 2016.

The Minister is reported as having admitted to receiving the loan and that she has subsequently repaid it and had proof to that effect.

When VBS collapsed in March 2018, the forensics investigations found that Razwinane was rewarded with R24.2 million for being a commissioning agent for multiple municipalities and state entities.

Razwinane is currently on trial for fraud, corruption and money laundering for his position as a commission agent connecting municipalities, including Polokwane Municipality with VBS.

It remains unclear at the time of publication, whether and when the President will share the findings of the report and the briefing with the public.

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