President Cyril Ramaphosa reshuffled his Cabinet, keeping Thembi Simelane regardless of VBS corruption allegations

On Tuesday night, President Cyril Ramaphosa announced changes to his Cabinet, shifting Thembi Simelane from the position of justice and constitutional development minister to lead the human settlements portfolio. Mmamoloko Kubayi will now take over as minister of justice and constitutional development.

In a statement, presidential spokesperson Vincent Magwenya explained that the move aimed to improve the Cabinet's effectiveness in meeting its responsibilities, citing section 91(2) of the Constitution.

Simelane has faced growing criticism after an investigation by Daily Maverick and News24 revealed she had accepted a "loan" in 2016 from a company linked to the controversial VBS Mutual Bank. The R575,600 loan came from Gundo Wealth Solutions, owned by Ralliom Razwinane, to finance the purchase of a coffee shop in Sandton. At the time, Simelane was the mayor of Polokwane Municipality, which had unlawfully invested R349 million in VBS through Razwinane, who is currently on trial for fraud, corruption, and money laundering.

Forensic investigations into VBS revealed Razwinane received R24.2 million in kickbacks for facilitating corrupt municipal investments, including the Polokwane Municipality.

Additional reports from Daily Maverick and News24 noted that Simelane led a lavish lifestyle in 2018, spending 569% more than her annual income just two years after the loan.

Mounting Pressure on Simelane

The exposé prompted Ramaphosa to demand a detailed report and meeting with Simelane in August. Calls for action came from various political parties. The DA and ActionSA argued that Simelane’s role as justice minister posed a conflict of interest, given her oversight of the National Prosecuting Authority (NPA), which is investigating the VBS scandal. The EFF demanded her resignation, citing her receipt of funds tied to illegal VBS transactions.

Despite the outcry, Simelane defended the loan as legitimate when she appeared before Parliament's justice committee in September.

Mixed Reactions to Cabinet Changes

DA MP and justice spokesperson Glynnis Breytenbach criticized Ramaphosa’s decision to move Simelane instead of taking more decisive action. Breytenbach stated, “While the President has finally addressed the untenable conflict of interest of having a minister of justice accused of corruption, his decision to simply move her somewhere else does not address the underlying issue — she stands accused of corruption and is subject to investigations. Human Settlements is a vital department for providing housing to South Africans. It must be led by a credible individual.”

Ramaphosa also announced other changes, including appointing Phumzile Mgcina as deputy minister of mineral and petroleum resources and Judith Nemadzinga-Tshabalala as deputy minister of employment and labour.

Critics say the reshuffle does little to address corruption allegations or inspire confidence in government accountability.