South Africa’s president, Cyril Ramaphosa, on Wednesday, requested the country’s justice minister to explain the corruption accusations that links her to a $130 million bank scandal since there are increasing demands for her resignation.
“President Cyril Ramaphosa has noted with concern media reports containing allegations of corruption” against Thembi Simelane, the president’s office said in a statement.
According to reports, Simelane received an illegal loan of over 500,000 rands ($28,000) when she was mayor of Polokwane, Northeastern Limpopo province, between 2014 and 2021.
The payment was linked to a fraud scandal at VBS Mutual Bank which collapsed in 2018 with executives and politicians blamed for looting.
“The president has requested a detailed report and briefing from the minister on the matter,” the presidency said.
There have been calls for Simelane to resign and to have a swift probe into the matter. The leftist opposition party, Economic Freedom Fighters (EFF), also called for her resignation even though some of its leaders are part of the scandal.
Due to her “involvement in looting” the bank, “it is now clear that Simelane has no place in the executive leadership of this country,” the EFF said.
Also, the centrist Democratic Alliance (DA) party said the “allegations raise serious questions about the minister’s integrity and her ability to fulfil the critical role of upholding justice”.
GOOD, a minor party, said: “Simelane cannot remain the minister responsible for a justice system that may well have to investigate and prosecute her.”
Simelane, 51, was appointed Justice Minister in June after a coalition between African National Congress (ANC), DA and other smaller parties after May’s elections.
The party lost its absolute parliamentary majority for the first time since the start of democracy in 1994.
Several high-ranking ANC officials, including Ramaphosa, his deputy, and the country’s former national assembly speaker, were implicated in multiple corruption scandals.
A 2018 report by the South African Reserve Bank revealed that $130 million (116 million euros) had been embezzled from VBS over three years by 53 individuals, including executives and politicians.
According to the report, most of the individuals who lost their savings due to the looting of the bank were poor rural depositors, such as pensioners.