President Cyril Ramaphosa will review Justice minister Thembi Simelane’s VBS loan saga report before making a final decision. Picture: Phando Jikelo/GCIS
President Cyril Ramaphosa will carefully consider the Justice Minister Thembi Simelane’s R575,000 VBS Mutual Bank loan scandal before making any decision.
This was revealed by Presidency spokesperson Vincent Magwenya while addressing the media in Cape Town on Ramaphosa’s programme.
Simelane came into the spotlight following reports that she received a loan of R575,600 from Gundo Wealth Solutions in 2016, when she was still the mayor of Polokwane Municipality.
She served as mayor for the municipality between 2014 and 2021, until she was appointed as justice minister in June this year, and took the loan to purchase a coffee shop in Sandton.
The company, which is owned by Rallion Razwinane, was directly linked to the unlawful investments of municipal funds into the now-defunct VBS Mutual Bank during her time as mayor.
In response to Simelane being involved in the VBS saga, the presidency said Ramaphosa would make a decision on the issue once he examined the report she had submitted.
“The president is in receipt of a report from the Minister of Justice and Constitutional Development Thembi Simelane, and as stated before the president will apply his mind over the matter,” said Magwenya.
“In doing so, the president will not engage issues that he manages with the ministers, including minister Simelane in the public domain.”
Magwenya said Ramaphosa appreciates the importance of the justice ministry in the leadership of the Justice security and Crime Prevention Cluster.
“The president appreciates its contribution to the functioning of the cluster and he is committed to ensure the highest level of integrity with the national executive.”
He said Ramaphosa will consider all the facts in the VBS saga before taking any decisions.
Meanwhile, the owner of Gundo Wealth Solutions, is currently on trial for fraud, corruption, and money laundering for his role as a commission agent linking municipalities, including Polokwane Municipality, with the VBS.
The African National Congress (ANC) in Limpopo recently called on those involved in the collapse of VBS Mutual Bank to face the full might of the law.
Provincial spokesperson Jimmy Machaka reaffirmed the party’s stance on VBS saying that “all the members and leaders who directly or indirectly contributed to its collapse should face the law with fear or favour, without fear or favour.”
In addition to that, political parties including, the Democratic Alliance (DA) and Congress of the People (COPE) and the Economic Freedom Fighters (EFF) have since demanded the urgent removal of Simelane amid the scandal.
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