President Cyril Ramaphosa has announced a cabinet reshuffle, triggering significant political discussion. The changes, effective immediately, see several ministers and deputy ministers shifting portfolios. While the Presidency cited enhancing cabinet performance as the rationale, the timing coincides with mounting pressure on former Justice Minister Thembi Simelane following revelations about her financial dealings linked to the collapsed VBS Mutual Bank.
In a statement released Tuesday evening, Presidency spokesperson Vincent Magwenya explained the changes, referencing section 91(2) of the Constitution. "The move," Magwenya said, “was to ensure the effectiveness of [the] Cabinet in delivering to its mandate and in accordance with section 91(2) of the Constitution”. The statement also highlighted that the Constitution of the Republic of South Africa, 1996, vests executive authority in the President, who works with cabinet members to uphold constitutional and legislative mandates.
The most prominent shift involves Mmamoloko Kubayi, previously Minister of Human Settlements, who now assumes the role of Minister of Justice and Constitutional Development. In a reciprocal move, Thembi Nkadimeng transitions from Justice and Constitutional Development to become the new Minister of Human Settlements. These changes follow a period of intense scrutiny surrounding Simelane's tenure as Justice Minister.
Further changes, in accordance with section 93(1)(a) of the Constitution, saw Phumzile Mgcina appointed as the new Deputy Minister of Mineral and Petroleum Resources, having previously served as Deputy Minister of Labour and Employment. Judith Nemadzinga-Tshabalala takes on the Deputy Minister of Employment and Labour role, moving from her previous position in Mineral and Petroleum Resources.
"The changes to the national executive are effective immediately. I would like to wish these members of the national executive well in their new positions," President Ramaphosa stated.
The significance of this loan lies in Razwinane's role as a broker for investments with VBS Mutual Bank. In 2016, when Simelane received the loan, the Polokwane Municipality, where she served as mayor, unlawfully invested R349-million in VBS, a transaction facilitated by Razwinane. Razwinane is currently on trial for fraud, corruption, and money laundering related to his activities as a commission agent connecting municipalities with VBS.
Forensic investigations into VBS, which was placed under administration in March 2018, uncovered R24.2-million in kickbacks paid to Razwinane for his role in these corrupt transactions. Further compounding the situation, Daily Maverick and News24 reported that Simelane maintained an extravagant lifestyle in 2018, spending 569% more than her declared annual income – less than two years after receiving the loan from Gundo Wealth Solutions.
Following the publication of these findings, President Ramaphosa requested a detailed report and a meeting with Simelane in August. The allegations against Simelane, who as Justice Minister oversaw the National Prosecuting Authority (NPA) – the very body investigating the VBS scandal – led to intense pressure for her removal. The DA and ActionSA called her position a conflict of interest, demanding accountability before Parliament. The EFF echoed these calls, demanding her resignation.
While appearing before Parliament’s justice committee in September, Simelane maintained that the loan was legitimate. However, the reshuffle suggests a different conclusion from the President. The DA’s Glynnis Breytenbach, spokesperson on justice and constitutional development, criticised the President's decision, stating that the move was “short-sighted and disrespectful” to South Africa.
“While the President has finally addressed the untenable conflict of interest of having a minister of justice accused of corruption, his decision to simply move her somewhere else does not address the underlying issue — she stands accused of corruption and is subject to investigations. Human Settlements is a vital department for providing housing to South Africans. It must be led by a credible individual. The indecisiveness of the President, who has explicitly committed to fighting corruption, is especially shocking and quite blatantly insincere,” Breytenbach commented.
The cabinet reshuffle also included the appointment of Phumzile Mgcina as Deputy Minister of Mineral and Petroleum Resources and Judith Nemadzinga-Tshabalala as Deputy Minister of Employment and Labour. The reshuffle, while presented as a measure to improve cabinet efficiency, has undeniably been shaped by the controversy surrounding Simelane and the ongoing fallout from the VBS scandal.
