By Lehlohonolo Lehana.
President Cyril Ramaphosa moved Justice and Constitutional Development Minister Thembi Nkadimeng-Simelane to a new department, amid an investigation into her conduct in the VBS Mutual Bank saga.
Nkadimeng-Simelane will swap roles with Human Settlements Minister Mmamoloko Kubayi, the presidency said in an statement on Tuesday.
“In order to ensure the effectiveness of the Cabinet in delivering to its mandate and in accordance with Section 91[2] of the Constitution, I have decided to make the following changes to the national executive. Mmamoloko Tryphosa Kubayi, currently the minister of human settlements, is appointed the minister of justice and constitutional development, read the statement.”
Simelane took a R575,600 loan from Gundo Wealth Solutions in 2016, a company whose director, Ralliom Razwinane, was a VBS fixer.
She has been under pressure to step down after it emerged that she received a loan from a VBS-linked fixer to pay for a Sandton coffee shop.
She received a loan from Gundo Wealth Solutions during her tenure as Polokwane mayor.
Simelane told Parliament that she had repaid R849,000 on the loan some four years later in three payments, in October and November 2020 with a final payment in January 2021. She offered no proof of these payments and claimed she received no undue benefit.
The same company had solicited deposits of millions of rands from the Polokwane municipality on behalf of VBS, despite public finance rules barring municipalities from placing money with mutual banks.
In total, Polokwane deposited R349-million with VBS between 2016 and 2017. The full amount was withdrawn prior to the bank’s collapse in 2018, caused by extensive looting by the bank’s management, fixers as well as ANC and EFF politicians.
Razwinane, however, is facing charges of corruption for payments he received from VBS in connection with the Polokwane deposits. He was paid commissions, effectively success fees, for securing the deposits. Prosecutors labelled these payments corrupt.
VBS collapsed in 2018 after its coffers were depleted by a fraudulent scheme in which money flowed from suspense accounts to bank officials and their family members.
ActionSA rejected Ramaphosa’s Cabinet reshuffle, vowed to continue pursuing every available avenue, including legal action, to ensure that this injustice is confronted.
And Democratic Alliance (DA) said, the indecisiveness of the President, who has explicitly committed to fighting corruption is especially shocking and quite blatantly insincere.
Meanwhile Phumzile Mgcina, is appointed the Deputy Minister of Mineral and Petroleum Resources. Mgcina has been serving in the national executive as the Deputy Minister of Labour and Employment.
Judith Nemadzinga-Tshabalala is appointed the Deputy Minister of Employment and Labour. Nemadzinga-Tshabalala has been serving in the national executive as the Deputy Minister of Mineral and Petroleum Resources.