South Africa’s Justice Minister Denies Corruption Allegations Amid Bank Scandal
In a scandal that has left thousands of retirees without their life savings, South Africa’s Justice Minister Thembi Simelane has denied corruption allegations related to the collapse of VBS Mutual Bank. The bank, which held the savings of mostly northern Limpopo province retirees, was declared insolvent and bankrupt in 2018 after it emerged that over 2 billion rand ($112 million) had been stolen from the bank.
Police investigations revealed that the stolen money was used to purchase luxury items and distribute financial gifts to various individuals and organizations, including political parties. Simelane, who was appointed as Justice Minister in June, is alleged to have received a “loan” to purchase a coffee shop from a company accused of receiving kickbacks for brokering unlawful investments for VBS.
In Parliament, Simelane insisted that the loan was above board and that she had paid it back with interest. She also denied any conflict of interest regarding the investigations into VBS’ collapse and her responsibilities as a minister. “The minister does not decide who should be prosecuted or not prosecuted. I offered impartiality to the NPA (National Prosecuting Authority),” Simelane said.
President Cyril Ramaphosa, who has promised to be tough on corruption, has faced pressure from opposition parties and civil society groups to fire Simelane. Last week, he asked Simelane to respond officially to him about the serious allegations against her. Addressing the media after a state visit to China, Ramaphosa said the matter would not be “swept under the carpet.”
The scandal has already resulted in convictions against some of the alleged masterminds behind the scheme, including the bank’s former chairman, Tshifiwa Matodzi, who was recently sentenced to 15 years in prison. Investigations into the bank collapse continue.
The allegations against Simelane have sparked calls for her removal from her position as Justice Minister, where she provides political oversight of the National Prosecuting Authority, which is trying corruption cases related to VBS. The controversy has further highlighted the need for effective governance and accountability in South Africa.
