South Africa’s Justice Minister, Thembi Simelane, has firmly denied any corruption allegations tied to the collapse of VBS Mutual Bank, a scandal that saw thousands of retirees lose their life savings. Responding to accusations that she benefited from unlawful dealings with the bank, Simelane defended her actions in Parliament on Friday, insisting that a loan she received was legitimate and repaid in full with interest.
The VBS Mutual Bank scandal, which surfaced in 2018, involved the embezzlement of over 2 billion rand ($112 million), mostly from retirees in the northern Limpopo province. Funds were unlawfully funnelled from local municipalities and misused to purchase luxury items, while political parties and individuals reportedly benefited from financial gifts and illicit investments.
Simelane, appointed as justice minister in June following the African National Congress’ (ANC) loss of its parliamentary majority in the May 29 election, faces scrutiny over her past role as mayor of Polokwane. Allegations surfaced that she received a ‘loan’ from a company involved in brokering unlawful municipal investments in VBS, including those from Polokwane.
However, Simelane dismissed any claims of wrongdoing, stating, ‘The loan I received was above board, unrelated to my mayoral duties, and I repaid it with interest.’ She further emphasised that her position as justice minister, which includes oversight of the National Prosecuting Authority (NPA), does not create a conflict of interest, asserting, ‘The minister does not decide who should be prosecuted.’
Simelane has been under pressure, with calls for her dismissal from opposition parties and civil society groups. President Cyril Ramaphosa, known for his strong stance on tackling government corruption, requested an official response from Simelane regarding the allegations. After attending the China-Africa summit, Ramaphosa assured the public that the issue would not be ‘swept under the carpet.’
The VBS scandal has already led to convictions, including that of former VBS chairman Tshifiwa Matodzi, who was sentenced to 15 years in prison after entering a plea deal. Matodzi’s testimony revealed the intricate workings of the fraudulent scheme, including ‘donations’ made to political groups like the Economic Freedom Fighters (EFF).
As investigations continue, Simelane remains firm in her defence, while South Africa awaits further developments in the ongoing probe into the VBS Mutual Bank collapse.
