ActionSA believes Justice Minister Thembi Simelane's appearance before the Justice Portfolio Committee this week, was nothing more than a talk shop.
Simelane addressed Parliament on Friday, where she denied any wrong-doing regarding the controversial VBS scandal and a loan she had taken to buy a coffee shop.
While she maintains that she did not receive any improper benefit, ActionSA's Athol Trollip, is not convinced that Simelane adequately answered the questions put to her.
"As we await the Public Protector’s final determination next Wednesday on how she intends to deal with our complaint, ActionSA contends that the Portfolio Committee meeting was nothing more than a ‘talk shop”, as we expected, and that this matter is best ventilated by an independent investigation by the Public Protector or in a court of law," Trollip said.
He said the party has exposed and observed numerous inconsistencies in the Simelane's explanations of how, during her tenure as Mayor of the Polokwane Municipality, she personally took a so-called “loan” from the same allegedly corrupt investment brokerage, namely Gundo Wealth Solutions, that facilitated the unlawful investment of R349 million from the Municipality into the now-collapsed VBS Bank.
"It is well-established that the said investment brokerage was not a registered financial service provider, making it implausible that the supposed 'loan' of R575,600 to the Minister was above board, which she now claims to have repaid with an additional staggering R274,399 in interest above the capital loan amount loan amount," he said.
He added that this exorbitant 47% interest above the principal “loan” over a relatively short term raises further suspicion and demands more intense scrutiny, as no credible financial advisor should ever propose such a punitive transaction to a ‘client’.
Trollip said this is why ActionSA has requested the Minister to furnish the party with the loan agreement and the business acquisition agreement.
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