President Cyril Ramaphosa has called on South Africa’s Justice Minister Thembi Simelane to provide an explanation regarding graft allegations linking her to the notorious VBS Mutual Bank scandal.
This request comes as calls for Simelane’s resignation mount in light of media reports suggesting her involvement in the misappropriation of funds exceeding US$130 million.
Presidential spokesperson Vincent Magwenya said Ramaphosa expressed his concern over the allegations, which claim that Simelane received improper payments from VBS Mutual Bank during her tenure as mayor of the Polokwane Municipality.
“The president has requested a detailed report and briefing from the minister on the matter,” Magwenya said in a statement on Wednesday.
The bank, which was placed under curatorship in 2018 after it was revealed to be at the centre of a massive fraud scheme, has been a focal point of controversy in South Africa, with numerous officials implicated in the scandal.
The VBS scandal has had far-reaching implications, including the collapse of the bank, which was primarily serving low-income communities.
Investigations revealed that the bank was involved in a scheme that siphoned off funds meant for local municipalities and other clients, resulting in significant financial losses for many.
JN/APA