My contract was with Gundo, not VBS - Simelane
Justice Minister Thembi Simelane on Friday admitted that she received a commercial loan from Gundo Wealth Solutions.
The company is in hot water for allegedly brokering unlawful investments totalling R349 million in the now-defunct VBS Mutual Bank.
However, the minister remained adamant that the money had no links to VBS Mutual Bank.
Simelane appeared before the Portfolio Committee on Justice and Constitutional Development in Parliament following allegations that she benefited from VBS.
She said the loan, which was taken during her time as mayor of Polokwane, was used to purchase a coffee shop in Sandton.
Simelane says her understanding was that Gundo was a registered financial service provider.
She told the committee that all the money had since been paid back.
"I was advised against the withdrawal of the retirement savings that I spoke about, and in those discussions, Gundo then informed and advised me of the loan products that they have that I could access. In consideration of the options, Gundo was not a service provider. There was no conflict in me securing a loan from Gundo.”
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