Thembi Simelane, the Minister of Justice, recently faced Parliament to explain her financial dealings with Gundo Wealth Solutions, a company entangled in the VBS Bank scandal, reports The South African. Simelane, who was the mayor of Polokwane at the time, received a R575,600 loan from Gundo, a municipal service provider involved in an illicit investment deal with VBS. Despite Democratic Alliance MP Damien Klopper challenging her comparison of the loan to borrowing from family, Simelane maintained that she believed Gundo was a registered financial service provider. She claims to have repaid the loan with significant interest, though she has yet to provide proof of payment to Parliament.
Simelane further distanced herself from the VBS scandal, emphasizing that her dealings were solely with Gundo, not VBS. She expressed regret over the financial harm caused to depositors, particularly pensioners in Venda, but reiterated that her contract was with Gundo. The Department of Justice issued a statement affirming that Simelane had repaid the loan and assured Parliament of the existence of proof, though this proof has not been made publicly available. The matter remains contentious, with questions surrounding the legitimacy of her loan and its repayment.
Image credit: South Africa’s Department of Justice and Constitutional Development, X
