Democratic Alliance (DA) Member of Parliament, Glynnis Breytenbach has raised concerns about the loan transaction involving the Minister of Justice Thembi Simelane, saying the loan transaction is “dodgy”, and demands that the minister steps down.
When Simelane was the mayor at the Polokwane Municipality she took a loan from Gundo Wealth Solutions through VBS so she could purchase a coffee shop in Sandton.
In an interview on Newzroom Afrika, Breytenbach said the loan transaction appears suspicious and involves several problematic elements.
‘’Looking at it, it looks a little dodgy.’’
Breytenbach said Simelane has consistently asserted that the loan in question was a legitimate commercial transaction, which she has fully repaid.
However, the specifics of the loan and the flow of funds — from the municipality to VBS, then to Gundo Wealth Solutions, and finally to the minister have raised red flags.
Breytenbach noted that "the money flared in a very short period of time" and highlighted that Gundo Wealth Solutions is not a commercial bank.
‘‘The investment of municipal funds into a mutual bank like Gundo seems to contravene the Financial Management of Municipalities Act (FMMA).’’
While acknowledging that a thorough investigation by the police and the National Prosecuting Authority (NPA) is necessary, Breytenbach said that the situation warrants the minister stepping down temporarily.
"Let the investigation be dealt with, let this matter reach its finality and we'll see where we are," she said.
Furthermore, she pointed out that the loan arrangement is unconventional and suggests there is a conflict of interest, particularly given the minister’s previous role as mayor of the Polokwane Municipality and the subsequent flow of money.
‘’The situation is further complicated by the minister’s current role at the top of the criminal justice cluster,“ she said.
Breytenbach noted that the Hawks have raided the Polokwane office and obtained relevant documents and cyber forensic evidence.
"There are active investigations on the go," she said.
Breytenbach also emphasised the problematic nature of having a sitting minister of Justice overseeing the NPA while being investigated herself.
"It makes their job pretty difficult and it makes their job much harder," she said.
The conflict of interest, according to Breytenbach, is glaring. She said that if the minister truly supports the NPA and believes in the rule of law, she should step aside to avoid any perceived influence over the investigation.
‘‘The conflict of interest is glaring, whether it is acted upon or not it is irrelevant, it exists,’’ she added.
Breytenbach noted that perceptions are critical, especially given South Africa's history. The presence of a sitting minister of Justice under investigation could undermine public trust, she said.
"To preserve her own interest, she should step aside," Breytenbach argued.
The decision for the minister to step down ultimately rests with the President, but Breytenbach insists that this is essential to ensure a fair and unbiased investigation.
In a state visit in China the president said Simelane’s matter would not be swept under the carpet and it would receive his attention.
The investigation, according to Breytenbach, should not be protracted. She believes it is a manageable part of the broader VBS issue and should be expedited.
"It doesn’t have to take forever," she said.
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