Justice minister Thembi Simelane was grilled in parliament on Friday. [Picture: Brenton Geach/Gallo Images (PTY) LTD]
Questions flew at justice minister Thembi Simelane as she was made to account before Parliament over a loan she received from a VBS-linked broker. She denied receiving improper benefits.
Simelane is at the centre of allegations that the ‘commercial loan’ she received was in fact a kickback from Gundo Wealth Solutions. The brokerage facilitated an investment by Polokwane Municipality, while she was mayor, into VBS Mutual Bank.
She said the R575 000 loan she received from GWS was paid back. She did not provide proof that it was repaid, but protested innocence.
“Did I receive any improper benefits? I did not receive any improper benefits from the contractor as indicated,” she insisted. “I wanted to invest in a coffee shop. I wanted to create employment opportunities for myself and my next-of-kin,” she said.
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Accountability
While Simelane spent Friday morning answering questions from the portfolio committee on justice, there were growing demands for accountability. She could face legal action, as well as an investigation by the Public Protector (PP).
Speaking in an interview with SABC, political analyst Dr Levy Ndou said it was necessary for opposition MPs to ask tough questions to ensure accountability. He said the public should expect nothing less.
“Some might view them as being harsh, but that should be seen as an exercise of accountability and indeed of ensuring that we are led by people of high moral standards and good ethical behaviour. That is exactly what we should expect from our public representatives.”
Meanwhile, opposition party ActionSA was unconvinced by Simelane’s protestations of innocence this morning. It believed the minister ought to account before a court of law.
In a statement on its website, the party said it had detected “numerous inconsistencies” in the minister’s explanation. One of those was the nature of the brokerage.
“It is well-established that the said investment brokerage was not a registered financial service provider, making it implausible that the supposed “loan” of R575,600 to the Minister was above board, which she now claims to have repaid with an additional staggering R274,399 in interest above the capital loan amount loan amount.
“Given these numerous concerns and the Minister’s lack of detailed, coherent and fully substantiated responses during her appearance before the Portfolio Committee appearance, we remain of the belief that this matter is best served by scrutiny of the Public Protector and a court of law,” it read.
