Simelane says she did not have an 'improper relationship' with VBS fixer
On Friday, Justice and Constitutional Development Minister Thembi Simelane told Parliament’s justice committee that her R500,000 loan from Gundo Wealth Solutions, which benefitted from now-defunct VBS bank while she was still Polokwane mayor, was paid back in full.
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
CAPE TOWN - Justice and Constitutional Development Minister Thembi Simelane says she did not have an “improper relationship” with a VBS fixer.
On Friday, Simelane told Parliament’s justice committee that her R500,000 loan from Gundo Wealth Solutions, which benefitted from now-defunct VBS bank while she was still Polokwane mayor, was paid back in full.
She appeared before the committee to explain to Members of Parliament (MPs) her involvement with VBS and Gundo Wealth and whether she benefitted improperly.
“Allow me to deal with this question and the first one. The improper relationship. I did not have an improper relationship with the contractor appointed with the municipality.”
She also said Gundo Wealth was not a normal contractor, and did not benefit financially from the municipality.
“We must start with the appreciation that as I’ve indicated, they are not a contractor and I did not receive payment.”
But MPs have questioned the loan with some calling for her to provide the written agreement.
SIMELANE DENIES WRONGDOING
Simelane said she had nothing to hide regarding her loan from a VBS fixer.
She assured members she could provide evidence of the loan agreement with Gundo.
"I have nothing to hide, that's why I'm here. But the sitting itself has its own position, and it's not an inquiry. It's a sitting of the committee getting an explanation from the minister, and that’s why I’m here," Simelane said.
She also denied any wrongdoing when taking up the loan, adding that the investment in VBS by Polokwane municipality while she was mayor was ultimately stopped and withdrawn two months before the National Treasury's instruction.