Simelane denies ‘improper relationship’ with VBS contractor
Minister of Justice Thembi Simelane on Friday denied any improper relationship with the contractor involved in the VBS scandal during her tenure as mayor of Polokwane.
She appeared before Parliament’s Justice Portfolio Committee to address claims that she received a R575,600 loan from a VBS-linked fixer to pay for a Sandton coffee shop.
Simelane told MPs that she did not unduly benefit from the looting of VBS Mutual Bank and was never involved in the appointment of the fixer, Gundo Wealth Solutions.
The company’s owner, Ralliom Razwinane, has been charged with fraud, corruption, and money laundering related to facilitating connections and “investments” between municipalities, including the Polokwane Municipality and the now-defunct VBS Mutual Bank.
Simelane said the municipality never paid any money to Gundo Wealth Solutions.
"This was advisory work was undertaken at no financial cost to the municipality, meaning it was not a tender where you are building a house and then there is a particular budget.
“It was a bid where you work at the commission that you are receiving, it’s what you get to be paid for, so there is no money that was paid by Polokwane Municipality to Gundo.”
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