Following Justice and Constitutional Development Minister Thembi Simelane’s appearance at the Justice Portfolio Committee meeting on Friday, her department revealed that she is scheduled to meet with President Cyril Ramaphosa, relating to her alleged involvement with a VBS Mutual Bank loan.

The date of the meeting was not confirmed.

It is alleged that that while serving as the mayor of Polokwane in 2016, Simelane took a loan of R575 600 from Gundo Wealth Solutions, a company that brokered “unlawful” investments of R349-million into VBS Bank on behalf of the Polokwane municipality, amongst others.

Ramaphosa has previously requested a detailed report and briefing from her on the matter.

Simelane appeared before the Portfolio Committee to answer questions on the matter, where she denied any allegations of wrongdoing and said is committed to cooperating fully with all inquiries.

She also pointed out that despite questions surrounding conflicts of interest, she is not involved in prosecutorial decisions made by the National Prosecuting Authority (NPA).

“The Minister highlighted her proactive measures, including instructing the withdrawal of municipal funds from VBS two months prior to the National Treasury’s advisory on investment irregularities. She also noted that the services of Gundo Wealth Solutions, used in this process, were provided at no cost to the municipality. No payments were made to Gundo Wealth Solutions, and Minister Simelane asserts that she received no improper benefits, with no conflict of interest involved,” the Department of Justice and Constitutional Development said in a statement.

Further, Simelane has said she has repaid the capital investment in three instalments from her personal Bank account, including interest of over R250 000.

The Department assured of the Minister’s commitment to accountability, ethical governance and transparency, noting she has not shied away from public scrutiny.

Meanwhile, the Democratic Alliance (DA) wants Simelane to step aside as Minister while her alleged involvement in the matter is investigated, explaining that she is in “an untenable conflict of interest”.

“Despite whether Simelane has repaid the loan from Gundo Wealth Solutions or not, the fact remains that the money involved is tainted. The loan's apparent exorbitant interest rate raises serious concerns, as it is highly questionable why the Minister chose to engage with an entity not registered as a financial service provider, Gundo Wealth Solutions, who in turn received the money from VBS bank. It's unclear why the minister did not approach an ordinary commercial bank,” said DA Justice and Constitutional Development spokesperson advocate Glynnis Breytenbach.

Despite Simelane’s assertions that NPA investigations are independent, the DA said as she oversees the NPA, Simelane’s role as Minister creates public distrust and compromises the integrity of her department.

“She must step aside to allow for a thorough and unbiased investigation into these matters,” Breytenbach said.

ActionSA said it was not convinced that Simelane adequately answered questions during the Justice Portfolio Committee meeting, calling it a “talk shop”.

ActionSA Parliamentary Leader Athol Trollip said her appearance has reinforced the party’s call for her to answer questions on the matter in a court of law, or by an independent investigation by the Public Protector.

“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. This exorbitant 47% interest above the principal ‘loan’ over a relatively short term raises further suspicion and demands more intense scrutiny, as no credible financial advisor should ever propose such a punitive transaction to a ‘client’, which is why we have requested the Minister to furnish us with the loan agreement and the business acquisition agreement,” Trollip said.