Simelane denies benefitting from VBS scandal
Justice Minister Thembi Simelane has refuted claims she improperly benefited from the now-defunct VBS Mutual Bank.
She reportedly took a loan of half a million rand from Gundo Wealth Solutions, which brokered investments for the controversial bank.
This was during her tenure as the mayor of Polokwane Municipality in 2016.
READ: Ramaphosa summons justice minister amid VBS claims
Simelane appeared before Parliament's Portfolio Committee on Justice and Constitutional Development on Friday.
She presented a report into the allegations, saying she took out the loan to purchase a coffee shop to give herself an alternative income after serving in public office.
"Initially, I intended to withdraw partially from my retirement. I experienced difficulties because of the cost and the charges. I asked Gundo for advice on any other idea on how best I could finance,” the minister told MPs.
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"In those discussions, Gundo then informed me and advised me of a loan product that they have and that I could access. There existed no conflict in my view on securing a loan from Gundo and I took a decision to proceed with the business."
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