Thembi Simelane at the Parliament’s Portfolio Committee on Justice and Constitutional Development on September 05, 2024 in Cape Town, South Africa. (Photo by Gallo Images/Brenton Geach)
President Cyril Ramaphosa has reshuffled his cabinet with immediate effect, moving Justice and Constitutional Development Minister Thembi Simelane to Human Settlement.
The president announced the changes to four portfolios on Tuesday evening.
“The changes to the national executive are effective immediately. I would like to wish these members of the national executive well in their new positions,” Ramaphosa said in a statement.
Ramaphosa has appointed Mmamoloko Kubayi as the new Minister of Justice and Constitutional Development, replacing Simelane with this appointment and concurrently moving Simelane to the Ministry of Human Settlements.
Ramaphosa has also appointed Phumzile Mgcina and Judith Nemadzinga-Chabalala as deputy ministers for Mineral and Petroleum Resources and Employment and Labour, respectively.
The president’s decision to reshuffle Simelane comes as she has faced severe criticism over a R575,600 “commercial loan” she received from Gundo Wealth Solutions, a company accused of brokering unlawful investments of R349 million by the Polokwane Municipality into the now-defunct VBS Mutual Bank.
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Simelane used the “commercial loan” from Gundo Wealth Solutions, owned by Ralliom Razwinane, to purchase a coffee shop in Sandton.
Simelane vehemently denied any wrongdoing, asserting that she handled everything transparently and repaid the loan in full.
She appeared before Parliament’s Portfolio Committee on Justice in September. She stated that she repaid the loan and interest in three installments of R283,333 on 9 October 2020, 12 November 2020, and 7 January 2021.
During the briefing, Simelane also denied having an improper relationship with Gundo Wealth Solutions, hired by the Polokwane municipality.
“It is a matter of public record that Polokwane municipality invested money into VBS bank during my tenure. No money was paid by Polokwane Municipality to Gundo Wealth Solutions. I did not have an improper relationship with a contractor employed by the municipality.”
In September, Ramaphosa vowed that he would not sweep the allegations against Simelane, related to the VBS bank scandal, under the carpet.
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Additional reporting by Faizel Patel
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