Justice Minister Thembi Simelane finds herself in a precarious position following allegations of gratuitous payments received from Gundo Wealth Solutions, a company implicated in the VBS Mutual Bank fraud scandal.
While Simelane has not been criminally charged, pressure is mounting within the ANC for her to resign, with ANC Secretary-General Fikile Mbalula allegedly at the forefront of these calls.
Sources within Luthuli House claim that Mbalula confronted Simelane two weeks ago at the Birchwood Hotel in Ekurhuleni during an ANC National Working Committee meeting, urging her to consider resigning.
“Our understanding is that Mbaks told Thembi that she must resign, clear her name, and then she might be considered for another ministerial position if the outcome of an investigation is in her favour,” revealed one insider.
Rumours are also circulating that MP and former Limpopo ANC spokesperson Donald Selamolela is being considered as a potential replacement.
Mbalula vehemently denies these allegations.
“I had a discussion with her that was confidential but I didn't ask her to resign,” he stated, adding, “I was told about these allegations, and I phoned Thembi last week about it, and she didn't give me a straight answer.”
He also dismissed the speculation surrounding Selamolela’s potential appointment.
Simelane’s spokesperson, Tsekiso Machike, declined to comment on the alleged pressure from Mbalula, stating that it was a party political matter outside his mandate.
In an attempt to clear her name, Simelane voluntarily appeared before the ANC Integrity Commission on Wednesday to explain the circumstances surrounding the loan she received from Gundo Wealth Solutions and its subsequent repayment with interest.
A source close to Simelane claims that she was deeply upset by Mbalula’s actions and confided in senior ANC member Mduduzi Manana, believed to be close to Mbalula, about the alleged pressure.
“Instead of intervening, Manana told Mbalula that Thembi was complaining about him,” the source explained.
Further accusations against Mbalula involve a press statement released on Wednesday, allegedly designed to pressure Simelane into resigning by publicly highlighting her appearance before the Integrity Commission.
A Simelane supporter pointed out, “On Wednesday, a premier from a specific province also appeared before the integrity commission, yet Mbalula only mentioned Simelane's appearance in the press statement.”
Manana denies that Simelane complained to him about Mbalula. “All I know is that Mbalula and Thembi met and had a discussion after the story broke but definitely she didn't complain to me about Mbalula forcing her to resign,” he said.
In a letter to President Cyril Ramaphosa, Simelane admitted to receiving the R575,600 loan from Gundo Wealth Solutions and provided proof of repayment, totalling R849,999, which included R274,399 in interest. She confirmed the Polokwane Municipality’s R349-million investment in VBS Mutual Bank but stressed that the municipality also invested with other institutions, including Standard Bank, Sanlam, Nedbank, Liberty, Absa, and Investec. She further asserted that the municipality withdrew all its investments from VBS Mutual Bank, including interest, before the bank’s collapse, and did not lose any funds.
Simelane explained that Gundo Wealth Solutions was appointed as an investment manager under strict conditions, with no administration or other fees paid for their advisory services. “Gundo Wealth Solutions was not a typical contractor of the municipality, in the strict sense of the word, in that municipality did not pay Gundo Wealth Solutions for services rendered.”
She also detailed her plans to open a coffee shop, establishing T5 Investment Group in July 2016 as a special purpose vehicle for this venture. Initially intending to use her retirement savings, she was advised against it due to potential levies, surcharges, taxation, and penalties. She subsequently secured the loan from Gundo Wealth Solutions.
Simelane provided proof of loan repayments, made on October 9, 2020, November 12, 2020, and January 7, 2021. She vehemently denies any conflict of interest, arguing that the municipality’s first investment with VBS Mutual Bank occurred on October 12, 2016, after her loan agreement with Gundo Wealth Solutions was signed on September 30, 2026, and without her involvement. She further stated that her relationship with Gundo Wealth Solutions ended on January 7, 2021, upon completion of her final loan repayment.
This unfolding saga has placed Simelane under intense scrutiny, with her future as Justice Minister hanging in the balance. The ANC’s step-aside rule, designed to protect the organisation's image, looms large. While Simelane maintains her innocence and has not been charged, the pressure from within the party, particularly from Mbalula, raises questions about her political survival. The Integrity Commission’s findings will be crucial in determining her fate.
