South Africa’s Justice Minister, Thembi Simelane, has firmly denied allegations of corruption involving the collapse of VBS Mutual Bank, a scandal that cost thousands of retirees their life savings.

In 2018, VBS Mutual Bank was declared bankrupt after more than 2 billion rand (approximately $112 million) was found to have been stolen. The collapse mainly affected retirees from Limpopo province and local municipalities whose funds were unlawfully invested in the bank.

The stolen funds were allegedly funneled into luxurious purchases, including high-end properties and cars, and used as financial gifts to various organizations, including political parties.

Simelane, who was appointed justice minister in June following the formation of a national unity government, is accused of receiving a questionable “loan” to purchase a coffee shop.

The company that provided the loan is under investigation for receiving kickbacks for brokering illegal investments from municipalities to VBS, including Polokwane, where Simelane previously served as mayor.

The accusations have ignited a political firestorm, with calls for Simelane’s removal from her post. Her current role places her in charge of overseeing the National Prosecuting Authority (NPA), which is leading efforts to prosecute individuals involved in the VBS scandal.

Critics argue that this creates a conflict of interest, as Simelane herself is linked to the ongoing investigations.

During a parliamentary session, Simelane defended her actions, stating that the loan she obtained for the coffee shop was legitimate and had been repaid with interest. She also maintained that the loan had no connection to the municipality’s investments in VBS during her tenure as mayor.

Rejecting the claims of conflict of interest, Simelane emphasized her commitment to impartiality in her responsibilities as justice minister. “The minister does not decide who should be prosecuted or not prosecuted. I offered impartiality to the NPA,” she declared.

Ramaphosa Faces Scrutiny Over Simelane Corruption Allegations

Pressure on President Cyril Ramaphosa has been mounting, with opposition parties and civil society groups demanding swift action. Ramaphosa’s administration, which has vowed to tackle corruption, is facing growing scrutiny over the handling of Simelane’s case.

Last week, the president requested an official response from Simelane regarding the accusations.

Addressing journalists upon his return from a state visit to China, where he attended the China-Africa summit, Ramaphosa assured the public that Simelane’s case would not be “swept under the carpet.” His comments have further fueled public interest in the investigation, as many wait to see whether decisive action will be taken.

The VBS scandal continues to unravel, with significant legal consequences for those involved. Former VBS chairman Tshifiwa Matodzi was recently sentenced to 15 years in prison after cooperating with prosecutors in a plea deal.

Matodzi revealed the intricate details of the bank’s collapse, including illicit payments made to political parties like the Economic Freedom Fighters, which received donations from the looted funds.

As such, as the investigation into the bank’s collapse progresses, the justice minister faces the daunting task of proving her innocence amid mounting public and political pressure.