Limpopo ANC calls for VBS beneficiaries to face full might of the law

The ANC in Limpopo has added its voice to the debate over justice minister Thembi Simelane having indirectly benefited from the defunct VBS Mutual Bank, saying those implicated should face the full might of the law. 

This comes after the provincial executive committee held its ordinary meeting on Monday. 

In a statement after its meeting, the ANC in the province said it reaffirmed its stance on VBS, "stating all members and leaders who directly or indirectly contributed to its collapse should face the full might of the law, without fear or favour".

This could be the first sign Simelane will face pressure to step aside from her government post. 

Simelane was supported by the Limpopo provincial executive committee and its branches when she was elected to the national executive committee (NEC). She would later receive support for election to the national working committee by those in the NEC from the province. 

Simelane has until recently been seen as a rising star in President Cyril Ramaphosa's cabinet. 

ANC secretary-general Fikile Mbalula recently told journalists the party would wait for its president Ramaphosa to make a decision on the matter. 

Simelane is due to appear before its committee of elders tasked with safeguarding the ethical and moral standing of the ANC. 

It is expected the ANC will discuss Simelane's future during a special NEC meeting on September 28. 

Simelane has been under fire, with opposition parties and civil society calling for her ousting after reports by News24 and Daily Maverick. 

The reports alleged the minister, who is tasked to oversee the National Prosecuting Authority (NPA) making arrests in connection with the VBS saga, had herself been indirectly involved with the bank  during her time as Polokwane mayor.

Simelane was mayor of Polokwane when the municipality invested more than R300m in VBS. The money was later withdrawn. At the time of the investment, Simelane received a R575,000 loan from Gundo Wealth Solutions, the company that facilitated the investment. Gundo owner Ralliom Razwinane is on trial for corruption related to the investment. Simelane bought a coffee shop in Sandton with the money.

Simelane appeared before the parliamentary portfolio committee on justice on Friday, where she was grilled about her alleged involvement in the VBS scandal.

She failed to convince the committee of her innocence, with political parties including GNU partners calling on her to step aside while the allegations are investigated. The EFF called for her resignation.

Daily Maverick and News24 reported on Friday that the Hawks had raided the Polokwane municipal offices in what is believed to be part of an investigation into the matter.

The province said it resolved to support the call for the resuscitation of VBS with an expanded scope and urged its deployees in government to initiate the process of implementing the esolution.

"A thorough consultation with all relevant stakeholders must not be overlooked at any stage," it said. 

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