Justice Minister Thembi Simelane took a loan of more than half a million rand from a company that brokered unlawful investments of R349-million into VBS Mutual Bank by the Polokwane Municipality while she was mayor of the city in 2016.

Thembi Simelane used the "commercial loan" of R575,600 from Gundo Wealth Solutions owned by Ralliom Razwinane to purchase a coffee shop in Sandton. Razwinane and Gundo also brokered investments on behalf of VBS Mutual Bank, and the Polokwane Municipality invested R349-million in the bank.

When VBS imploded in March 2018, forensic investigations found it had rewarded Razwinane with kickbacks totalling R24.2-million for being a commissioning agent for various municipalities and state entities.

Investigators found these to be corrupt transactions and contraventions of the Municipal Finance Management Act. Razwinane is currently on trial for fraud, corruption and money laundering for his role as a commission agent connecting municipalities, including Polokwane Municipality, with VBS.

As minister of justice, Simelane oversees the National Prosecuting Authority (NPA), which is investigating and prosecuting those involved in the collapse of VBS. She is also a member of the justice and crime prevention cluster in the Cabinet, which includes the police and the Hawks, who are also investigating the VBS matter. She was Polokwane mayor between 2014 and 2021 and was appointed as justice minister in June.

Kickbacks for investments

Simelane used the "loan"...