Simelane allegedly took the R500 000 loan from a company that brokered unlawful investments of R349 million into VBS Mutual Bank
President Cyril Ramaphosa has summoned Justice Minister Thembi Simelane to provide a detailed report on allegations that link her to the Venda Building Society (VBS) Mutual Bank scandal.
Simelane allegedly took a R575 600 “commercial loan” from Gundo Wealth Solutions, owned by Ralliom Razwinane, and brokered unlawful investments of R349 million into the now defunct VBS Mutual Bank by the Polokwane Municipality while she was mayor of the city in 2016.
Razwinane is facing charges for allegedly acting an agent secure business for VBS from municipalities.
Detailed report on VBS loan
Ramaphosa’s spokesperson Vincent Magwenya said the president is concerned about the media reports containing allegations of corruption against Simelane.
“The media reports have linked the minister with monies alleged to have been received improperly from the VBS Mutual Bank during her tenure as mayor of the Polokwane Municipality. The president has requested a detailed report and briefing from the minister on the matter.”
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Pressure on Simelane
Civil society organisations have added their voice to calls for Simelane to urgently clarify corruption allegations that linked her to the VBS scandal.
Freedom Under Law (FUL), Ahmed Kathrada Foundation, Judges Matter and Defend Our Democracy have expressed concerns about the explosive revelation that Simelane was connected to unlawful investments in VBS Mutual Bank.
This is a developing story
ALSO READ: Pressure mounts on Thembi Simelane to account for dodgy VBS ‘loan’
