South African President Cyril Ramaphosa has asked for a detailed report from Minister of Justice and Constitutional Development Thembi Simelane following media allegations of corruption, the presidency says.
It comes after Civil society organisations called on the minister to “fully and transparently” respond to the recent Mutual Bank VBS allegations levelled against her.
The claims link Ms Simelane to improper payments from VBS Mutual Bank during her time as mayor of Polokwane.
“The President has requested a detailed report and briefing from the Minister on the matter,” The presidency said In a statement,
President Ramaphosa has expressed concern over the reports, which allege Ms Simelane received funds improperly from VBS Mutual Bank.
The presidency did not provide further details on the nature of the allegations or the amount of money involved.
VBS Mutual Bank collapsed in 2018 amid a major corruption scandal that implicated several high-profile politicians and businesspeople.
Civil society organisations Freedom Under Law (FUL), the Ahmed Kathrada Foundation, Judges Matter and Defend Our Democracy on Tuesday called on Simelane to respond to the allegations.
In a joint statement, the organisations said perceptions of corruption and conflicts of interest cause significant harm to public confidence in governance institutions and the rule of law.
Reports stated that Simelane, while serving as mayor of Polokwane, made two unlawful investments into the since-collapsed VBS Mutual Bank.
It is said that these payments appeared to be linked to kickbacks paid in exchange for the deposits into VBS by the municipality.
It is further alleged that these kickbacks were paid to a company which then used a significant portion of the kickbacks to pay towards a loan which was used for the purchase of a coffee shop by the Minister.
Simelane has claimed that the transaction was a legitimate commercial loan which was fully repaid.
This development comes at a sensitive time for South Africa’s government, which has pledged to tackle corruption in the wake of several high-profile scandals.
The presidency statement did not indicate a timeline for when Minister Simelane is expected to provide her report to the president.
