Babalo Ndenze 6 September 2024 | 15:18

MPs not buying Justice Minister Simelane's loan explanation

They also questioned Simelane’s reasons for securing a loan from Gundo Wealth Solutions, which is not a registered financial services provider.

MPs not buying Justice Minister Simelane's loan explanation

Minister of justice and Constitutional Development Thembi Simelane appears before the portfolio committee on justice and correctional services to explain matters related to VBS Mutual Bank, 6 September 2024. Picture: Phando Jikelo/Parliament of SA

JOHANNESBURG - Members of Parliament are not convinced by Justice Minister Thembi Simelane's explanations about her loan from a VBS fixer.

They also questioned Simelane’s reasons for securing a loan from Gundo Wealth Solutions, which is not a registered financial services provider.

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They pointed towards a conflict of interest since Simelane’s exercises executive authority over the National Prosecuting Authority (NPA) which is prosecuting those implicated in the VBS looting.

But Simelane said she did not have an improper relationship with Gundo Wealth Solutions, which was paid million by the now defunct VBS bank.

Simelane was at pains to explain to MPs her relationship with the VBS bank fixer who loaned her over R500,000.

But MPs like the Democratic Alliance's (DA) Glynnis Breytenbach were not convinced by Simelane's denials that the transaction was not improper.

"It’s the dodgy money that's the problem - because all of their money was dodgy money, and you were the recipient of the dodgy money."

Fellow committee member Heloise Denner from the Freedom Front (FF) Plus wanted to see the actual loan agreement.

"But I don’t see that loan agreement with Gundo Wealth Solutions provided. So I'd like to know is the loan agreement available. Can we have a copy of this loan agreement?"

Committee Chairperson Xola Nqola said the committee would get legal advice on how to handle the loan agreement, saying the committee would meet again next week.