Justice Minister Thembisile Simelane appeared before the Portfolio Committee on Justice and Constitutional Development on Friday, addressing concerns over a R575,600 loan she received from the now-collapsed VBS Mutual Bank.
Story Summary:
- Justice Minister Thembisile Simelane appeared before the Portfolio Committee on Justice and Constitutional Development to clarify her VBS loan.
- Simelane stated there was no conflict of interest in the loan and that it was repaid in full.
- Committee members raised concerns over the timing of her repayment, which occurred after the damning VBS report in 2020.
Minister Thembisile Simelane provides clarity on VBS loan
The loan was allegedly used to purchase a coffee shop in Sandton in 2017.
In her defence, Simelane told committee members that the loan was legitimate and free of any conflict of interest.
“The loan I took from VBS was fully compliant with all legal requirements, and I have repaid it in full,” she stated.
Simelane further clarified that she followed due process and that the loan was above board.
The minister, who previously served as the mayor of Polokwane, has faced scrutiny in connection with her relationship with VBS, a bank at the heart of one of South Africa’s largest banking scandals.
The Hawks recently searched the home of her former personal assistant as part of their ongoing investigation into corruption linked to VBS, which is accused of stealing over R2 billion.
Justice committee raises red flags about Simelane’s relationship with VBS
Despite her explanations, committee members raised serious concerns over the nature of Simelane’s loan and the timing of its repayment.
Several MPs questioned why she chose to settle the loan only after the release of the VBS report in November 2020, which exposed extensive corruption within the bank.
One committee member asked, “Was it a coincidence that you repaid the loan right after the scandal broke?”
Simelane defended the timing, arguing that her repayment had nothing to do with the report.
“I did not repay the loan because of any external pressure. It was always my intention to settle the debt,” she insisted.
Another point of contention was why Simelane approached VBS for the loan in the first place instead of the financial institution she regularly banked with at the time.
While Simelane maintained that her actions were above board, the grilling in Parliament leaves lingering doubts about her relationship with the embattled bank and whether she received preferential treatment in securing the loan.
The committee session was ongoing when this article was published.
