The VBS Mutual Bank saga continues to unfold, with a recent investigation revealing a complex web of financial transactions involving Justice Minister Thembi Simelane and corruption-accused Ralliom Razwinane. The focus of the investigation is a R575 600 "loan" allegedly issued by Razwinane's financial advisory company, Gundo Wealth Solutions, to Simelane in 2016, a transaction that raises significant questions about its legitimacy and the nature of their relationship.
Simelane, who was the mayor of Polokwane Municipality at the time, claims she received the "loan" to purchase a coffee shop in Sandton. However, the investigation revealed that Gundo, a company that was never registered as a credit provider, had no history of offering loans. Furthermore, the only other transactions marked as "loans" in the Gundo account, totalling a mere R23 000, were made to three different individuals after 2016.
The VBS Mutual Bank saga continues to unfold, with a recent investigation revealing a complex web of financial transactions involving Justice Minister Thembi Simelane and corruption-accused Ralliom Razwinane. The focus of the investigation is a R575 600 "loan" allegedly issued by Razwinane's financial advisory company, Gundo Wealth Solutions, to Simelane in 2016, a transaction that raises significant questions about its legitimacy and the nature of their relationship.
Simelane, who was the mayor of Polokwane Municipality at the time, claims she received the "loan" to purchase a coffee shop in Sandton. However, the investigation revealed that Gundo, a company that was never registered as a credit provider, had no history of offering loans. Furthermore, the only other transactions marked as "loans" in the Gundo account, totalling a mere R23 000, were made to three different individuals after 2016.
The timing of the "loan" is particularly noteworthy. Days before the transaction, Razwinane facilitated five unlawful investments totalling R349 million from Polokwane Municipality into VBS. In return for connecting the bank and the municipality, Razwinane received millions in kickbacks from VBS, a portion of which ultimately ended up in Simelane's possession.
The investigation found that Gundo's VBS account was primarily used for receiving kickbacks and funding Razwinane's personal expenses. In 2016, Gundo received R1.47 million in four payments, all of which were kickbacks from VBS. Three of these transactions were directly tied to Polokwane Municipality's investments in VBS and were described by prosecutors as corrupt. The remaining transaction was a "bridging loan" for a property.
The analysis of Gundo's bank statements reveals a pattern of significant outflows, with the majority of the money being directed to Razwinane's personal accounts and property purchases. In 2016, R2.07 million flowed out of Gundo, with R575 600, or 39% of the inflows, being used to purchase the coffee shop for Simelane. This makes the transaction a significant outlier, particularly considering that Gundo was not in the business of lending money.
The investigation also revealed that Razwinane regularly used the overdraft facility provided by VBS, which was initially capped at R600 000 but eventually reached over R900 000. This suggests that Razwinane was heavily reliant on VBS for funding his personal and business expenses.
Simelane, now the Justice Minister, has denied any wrongdoing, claiming there was no conflict of interest in using Gundo, a company contracted to her municipality, as her personal "loan" provider. She has also denied any conflict of interest between her position as a potential VBS suspect and her role as the political head of the National Prosecuting Authority, which is responsible for the VBS prosecutions.
The "loan" to Simelane and the subsequent use of VBS funds for personal gain raise serious questions about the integrity of both Simelane and Razwinane. The lack of transparency and the questionable nature of the transactions suggest that the VBS saga is far from over. The investigation's findings are likely to further fuel public scrutiny and calls for accountability.
The Minister is scheduled to appear in Parliament on Friday to answer questions related to the "loan". It remains to be seen whether she will be able to provide satisfactory explanations for her actions and address the concerns raised by the investigation. The spotlight is now firmly on Simelane, and the public is eagerly awaiting her response.
The timing of the "loan" is particularly noteworthy. Days before the transaction, Razwinane facilitated five unlawful investments totalling R349 million from Polokwane Municipality into VBS. In return for connecting the bank and the municipality, Razwinane received millions in kickbacks from VBS, a portion of which ultimately ended up in Simelane's possession.
The investigation found that Gundo's VBS account was primarily used for receiving kickbacks and funding Razwinane's personal expenses. In 2016, Gundo received R1.47 million in four payments, all of which were kickbacks from VBS. Three of these transactions were directly tied to Polokwane Municipality's investments in VBS and were described by prosecutors as corrupt. The remaining transaction was a "bridging loan" for a property.
The analysis of Gundo's bank statements reveals a pattern of significant outflows, with the majority of the money being directed to Razwinane's personal accounts and property purchases. In 2016, R2.07 million flowed out of Gundo, with R575 600, or 39% of the inflows, being used to purchase the coffee shop for Simelane. This makes the transaction a significant outlier, particularly considering that Gundo was not in the business of lending money.
The investigation also revealed that Razwinane regularly used the overdraft facility provided by VBS, which was initially capped at R600 000 but eventually reached over R900 000. This suggests that Razwinane was heavily reliant on VBS for funding his personal and business expenses.
Simelane, now the Justice Minister, has denied any wrongdoing, claiming there was no conflict of interest in using Gundo, a company contracted to her municipality, as her personal "loan" provider. She has also denied any conflict of interest between her position as a potential VBS suspect and her role as the political head of the National Prosecuting Authority, which is responsible for the VBS prosecutions.
The "loan" to Simelane and the subsequent use of VBS funds for personal gain raise serious questions about the integrity of both Simelane and Razwinane. The lack of transparency and the questionable nature of the transactions suggest that the VBS saga is far from over. The investigation's findings are likely to further fuel public scrutiny and calls for accountability.
The Minister is scheduled to appear in Parliament on Friday to answer questions related to the "loan". It remains to be seen whether she will be able to provide satisfactory explanations for her actions and address the concerns raised by the investigation. The spotlight is now firmly on Simelane, and the public is eagerly awaiting her response.
