Justice Minister Thembi Simelane will appear before the ANC’s integrity commission to provide a full account of a R575 600 loan she received from the now defunct VBS Mutual Bank, ANC secretary general Fikile Mbalula said on Monday.
He told journalists at a media briefing in Boksburg, Ekurhuleni, that the party was adhering to its established procedures in addressing the matter, with President Cyril Ramaphosa having the final say.
The briefing followed a meeting of the ANC’s national working committee with the Gauteng leadership to evaluate the party’s poor election performance in the province in May.
“The issue of Minister Thembi Simelane is ongoing. She has been asked by the president to explain herself. From our own situation, that work is continuing, and a report has been submitted to the president,” Mbalula said.
He added that the integrity commission would recommend to the national executive council what must happen and the party would follow its processes to review Simelane’s version of events.
“She will present herself to the integrity commission. The integrity commission, upon receiving her full account of what actually happened, will recommend to the national executive committee what must happen to the comrade. That is where we are; we have checks and balances in the party,” Mbalula said.
In 2016, while serving as mayor of Polokwane, Simelane received a loan linked to Gundo Wealth Solutions, a company implicated in the VBS scandal. At that time, the Polokwane municipality had illegally invested R349 million in the mutual bank, with the transaction facilitated by Gundo’s owner, Ralliom Razwinane, who is now on trial for fraud and corruption.
Simelane has consistently denied any wrongdoing. Last week, she told parliament’s portfolio committee on justice that her loan was legitimate and had been repaid in full.
She dismissed any suggestion of a conflict of interest despite her oversight as justice minister of the National Prosecuting Authority (NPA), which is investigating the VBS scandal.
Simelane also distanced herself from the Polokwane municipality’s decision to invest in VBS, claiming no involvement in the Gundo deal and adding that it was under her tenure that the investments were halted.
Several MPs, including Freedom Front Plus’s Heloïse Denner and the Democratic Alliance’s Glynnis Breytenbach, called for Simelane to step down, citing the serious nature of the allegations. The matter was referred to parliament’s legal services for further advice.
ActionSA, which has filed a complaint with the public protector alleging that the minister may have violated the Executive Members’ Ethics Act, has also called for an independent investigation, citing concerns over her continued role as justice minister, particularly given her influence over the NPA.
ActionSA parliamentary caucus leader Athol Trollip has been vocal in his criticism and on Monday said that given the minister’s position of authority over the NPA, her “continued tenure in this role is untenable until the cloud of suspicion is removed”.
ActionSA has also written to the speaker of the National Assembly and the chairperson of the justice portfolio committee, requesting that Simelane be suspended pending the outcome of any investigation. The party is calling for a full, independent inquiry into her involvement in the VBS scandal.
“Given that the minister has shown no intention of stepping down until her name has been cleared and the cloud over her role as minister of justice has been removed, ActionSA has written to the speaker and chairperson requesting that an investigation be instituted and that they refer the matter to the president urgently so that the minister may be suspended pending the conclusion of all investigations,” Trollip said in a statement.
On Monday, Mbalula said the concerns regarding a potential conflict of interest, given her role as justice minister, would be handled by the president, while the ANC addresses the matter through its internal processes.
“We do not want to prejudice any individuals so we follow the processes of the organisation that we have set in motion,” said Mbalula.
“What an individual does in the public domain to clear herself in terms of engagement, that is her own call. She is doing it on her own behalf and it is not an ANC mandate.”
Mbalula reiterated that the ANC would not act prematurely: “We are following our processes. The integrity commission will deal with this matter, and we will await its recommendations.”
