Parly committee to seek legal opinion regarding Simelane-VBS saga

Parliament’s Justice and Constitutional Development committee says it will seek legal opinion before processing the information given by Minister Thembi Simelane regarding VBS loan allegations levelled against her.

Simelane faced robust questions from MPs on whether she had an improper relationship with Gundo Wealth Solutions and whether she benefited improperly.

The service provider had a contract with the Polokwane Municipality when Simelane was still a mayor.

Committee Chairperson Xola Nqola, “There  is a certain form of relief that you have been able to be afforded … little time to  thoroughly give a detailed ABCs  of actually what happened. The committee will, therefore, look into the solicited legal opinion by legal parliament services. We are sure that you are  also going to share with us what would have been the advice  from your counsels. But  also from our sid,e you are on record saying the money was repaid. You have given us the dates when the money was actually repaid. You have affirmed here in front of everyone, that you don’t only have  financial statements from  your bank accounts. You actually have financial statements from the accounts where the money  was paid to,” says Nqola.

Simelane says she did not have an improper relationship with the contractor employed by the Polokwane municipality or received improper benefits.

It emerged recently that Simelane received a R 575 000 loan from an accused VBS investment broker in 2016.

According to media reports, the funds from the bank were used to purchase a coffee shop in Sandton, Johannesburg, while she was Mayor of Polokwane Municipality in Limpopo.

At the time, Gundo Wealth Solutions brokered investments on behalf of the collapsed VBS Mutual Bank.

After being summoned to appear before Parliament’s Portfolio Committee on Justice over alleged dodgy dealings with VBS, which imploded in 2018, she presented her report and statement to Members of Parliament in Cape Town.

She says, “I asked Gundo for advice on how best to finance and they offered me a loan product that I could access such a loan. Gundo was not a service provider and there existed no conflict of interest, in my view, in securing a loan from Gundo. I took a decision to proceed with the steps. I would like to draw to a close and affirm that there was no improper relationship, I requested for a loan and a loan was advanced.”

Live stream | Simelane appears before the Parliament Committee: