VBS 'fixer' who advised Justice Minister Simelane barred by FSCA

The Money Show interviews the Financial Sector Conduct Authority's Gerhard van Deventer, and investigative journalist Pauli van Wyk.

The financial advisor who provided a loan to Justice Minister Thembi Simelane, has been barred from operating in the financial services sector by the Financial Sector Conduct Authority (FSCA).

Aside from his ten-year debarring, Ralliom Razwinane was also slapped with a fine of R3 million.

The financial regulator found that Razwinane, and his former company Gundo Wealth Solutions, had demonstrated a lack of honesty and integrity.

The investigation was launched because Razwinane advised the Polokwane Municipality and the Community Schemes Ombudsman Service (CSOS) to invest surplus funds into VBS Mutual Bank around 2016 and 2017.

The Presidency said on Wednesday that President Cyril Ramaphosa will decide 'quite soon' on Simelane, who's facing claims of impropriety linked to the now-liquidated VBS Mutual Bank.

Simelane goes to ground after ActionSA's criminal complaint over her VBS-linked loan

The Minister was mayor of Polokwane when she got a R575 600 loan from Gundo Wealth Solutions through Razwinane.

Stephen Grootes interviews Gerhard van Deventer, Divisional Executive of Enforcement at the FSCA.

"The FSCA found that Razwinane acted inappropriately in providing advice as a financial services provider and so did Gundo Wealth Solutions. They are required as license holders to adhere to a code of conduct.... and especially when it comes to advice."

"As we know today, his advice for the Community Schemes Ombudsman Service and the Polokwane Municipality was obviously not suitable... This included
the investment circumventing the Public Finance Management Act and the Municipal Finance Management Act."

Gerhard van Deventer, Divisional Executive: Enforcement - FSCA

Grootes also got comment from Pauli van Wyk, investigative Journalist with Daily Maverick's Scorpio unit.

Van Wyk describes Razwinane as the 'fixer' between various municipalities and various state-owned enterprises, and VBS.

"The Motau and Werksmans report found that he received an unlawful R24.2 million in kickbacks, bribes and 'loans' from VBS in exchange for connecting with and cajoling municipalities and municipal officials to invest in the bank."

"I really do think that hard questions must be asked of the integrity of the Justice Minister who is now the executive political head of the National Prosecuting Authority. who ought to view her as a suspect in this case."

Pauli van Wyk, Investigative Journalist - Daily Maverick's Scorpio unit

Scroll up to hear more detail in the interview audio