South Africa’s new justice minister, Thembi Simelane, is denying corruption allegations concerning a mutual bank scandal that saw thousands of retirees lose their life savings. VBS Mutual Bank, primarily holding the retirees’ savings from the Limpopo province, was declared bankrupt after it was revealed that over 2 billion rand had been stolen. Investigations showed that the embezzled funds were used to buy luxury properties and vehicles and offer financial favors to various individuals and groups, including political parties.
Simelane, appointed in June to her position, has been accused of receiving a questionable loan to buy a coffee shop from a firm implicated in securing illegal investments for VBS from South African municipalities, including one where she served as mayor. Calls for her removal as justice minister have surfaced due to her oversight of corruption cases related to the bank. She defended herself in Parliament, claiming the loan was legitimate and unrelated to her municipal dealings.
Despite facing pressure to dismiss Simelane, President Cyril Ramaphosa has requested an official response from her regarding the allegations. Ramaphosa, pledging to combat government corruption, has assured that the matter involving Simelane will be thoroughly addressed. A former chairman of VBS, Tshifiwa Matodzi, has been sentenced to 15 years in prison after disclosing details of the looting scheme, including funds given to a political party as donations. Investigations into the bank’s collapse are ongoing, with some involved already convicted.
