South African Justice and Constitutional Development Minister, Thembi Simelane, denied allegations of misconduct during her time as Mayor of Polokwane Local Municipality. She explained that she approved the withdrawal of municipal investments from VBS Mutual Bank under guidance from technical experts within the Municipality. She also denied allegations of an inappropriate relationship with a contractor hired by the Municipality and receiving any monetary gains from said contractor. Minister Simelane showcased a profound sense of duty and dedication to her country and its citizens, reaffirming her commitment to her role and putting national interests above personal ones.
Addressing the Allegations
South African Justice and Constitutional Development Minister, Thembi Simelane, denied allegations of potential misconduct during her time as Mayor of Polokwane Local Municipality. She approved the withdrawal of all municipal investments from VBS Mutual Bank, two months before their maturity, under guidance from technical experts within the Municipality and prior to the National Treasury instructing all municipalities to withdraw their investments from the bank. She also denied allegations of an inappropriate relationship with a contractor hired by the Municipality and receiving any monetary gains from said contractor, citing proper channels for the appointment of Gundo Wealth Solutions as the municipality’s financial advisor.
On a clear morning on August 26th, 2024, South African Justice and Constitutional Development Minister, Thembi Simelane, delivered an address to the Portfolio Committee on Justice and Constitutional Development. This was a response to a report by News24 and Daily Maverick insinuating potential misconduct during her time as Mayor of Polokwane Local Municipality, a suggestion she strongly denied.
Addressing the Allegations
The allegations against Minister Simelane were predicated on the fact that during her term as Mayor, the Polokwane Local Municipality had invested in VBS Mutual Bank. She outlined that under her guidance, and following advice from technical experts within the Municipality, she approved the withdrawal of all municipal investments from VBS, which occurred two months before their maturity. Notably, this was prior to the National Treasury instructing all municipalities to withdraw their investments from the bank.
The key allegations hinged on two questions: the first being whether she had an inappropriate relationship with a contractor hired by the Municipality, and the second, if she received any monetary gains from said contractor. She categorically rebuffed both insinuations.
Gundo Wealth Solutions, the company in question, acted as the Financial Advisor to the Polokwane Local Municipality, providing guidance on investment decisions. These services were offered free of charge to the municipality, negating any potential for a conflict of interest as a paid contractor. The appointment of Gundo Wealth Solutions was done through proper channels, uninfluenced by Minister Simelane, further debunking the allegations.
The Questions of Improper Benefits and Business Dealings
The Minister then addressed the second question regarding improper benefits from the contractor. She explained that her public service role made it difficult for her family members to obtain jobs in the public sector due to potential accusations of nepotism and favouritism. To counteract this, she mulled over starting a business—specifically, a coffee shop—to provide employment opportunities.
Initially, she intended to finance this venture through a partial withdrawal from her retirement savings. However, after seeking advice from Gundo Wealth Solutions, they proposed that she consider their business loan products instead. The rationale being, the amount she would receive from her retirement savings would be considerably less than what was required for the business operation.
In September 2016, she established T5 Investments Group (Pty) Ltd, which traded as Silvanas Bistro, and later registered Silvanas Events in October 2019. On the very day of the company’s establishment, she secured a loan from Gundo Wealth Solutions for R575,600 to fund her business. The loan was fully repaid by January 2021.
Subsequent Controversy and Minister Simelane’s Stand
Despite the elucidation, Minister Simelane did not avoid criticism from the council as mentioned in the Limpopo Provincial Treasury forensic investigation report. The report suggested that “corrective action be considered against Executive Mayor T. Nkadimeng for her failure to comply with section 52 of the MFMA”.
Facing these allegations, Minister Simelane stood her ground, declaring her innocence and insisting that she did not receive any improper benefits from Gundo Wealth Solutions. She brushed off allegations of a conflict of interest, stating that the Department of Justice and Constitutional Development, which she currently leads, does not have sway over the decisions of the National Prosecuting Authority.
A Commitment to Serve
In her address to the committee, Minister Simelane showcased a profound sense of duty and dedication to her country and its citizens. Despite being confronted with allegations and personal concerns regarding potential conflicts of interest, she reaffirmed her commitment to her role and put national interests above personal ones. This act bears witness to her faith in transparency, fairness, and the rule of law.
Throughout her public service tenure, Minister Simelane has consistently exemplified a commitment to her principles, even when facing personal loss and public scrutiny. Her determination to serve her nation, uphold justice, strive for accountability in public service, and most importantly, her refusal to be influenced by unfounded allegations, speak volumes about her character and dedication to the people of South Africa.
1. What were the allegations against South African Justice and Constitutional Development Minister, Thembi Simelane?
The allegations against Minister Simelane were focused on potential misconduct during her time as Mayor of Polokwane Local Municipality, specifically around the municipality’s investments in VBS Mutual Bank and her relationship with a contractor hired by the municipality.
2. How did Minister Simelane respond to the allegations?
Minister Simelane denied all allegations of potential misconduct, stating that she approved the withdrawal of all municipal investments from VBS Mutual Bank under guidance from technical experts within the Municipality and denied receiving any monetary gains from the contractor in question.
3. What was the role of Gundo Wealth Solutions in this situation?
Gundo Wealth Solutions acted as the Financial Advisor to the Polokwane Local Municipality, providing guidance on investment decisions free of charge. They also provided Minister Simelane with a loan to finance her business venture.
4. Was there any evidence of improper benefits or business dealings on the part of Minister Simelane?
Minister Simelane denied any improper benefits or business dealings and explained that the loan provided by Gundo Wealth Solutions was necessary to finance her business venture, which was established to provide employment opportunities for her family members.
5. Did Minister Simelane face any criticism or consequences as a result of these allegations?
The Limpopo Provincial Treasury forensic investigation report suggested corrective action be considered against Executive Mayor T. Nkadimeng for her failure to comply with section 52 of the MFMA, but Minister Simelane stood her ground, declaring her innocence and insisting that she did not receive any improper benefits.
6. What does Minister Simelane’s response to these allegations reveal about her character and dedication to her role?
Minister Simelane’s response to these allegations showcases a profound sense of duty and dedication to her country and its citizens. Her determination to serve her nation, uphold justice, strive for accountability in public service, and most importantly, her refusal to be influenced by unfounded allegations, speak volumes about her character and dedication to the people of South Africa.
