KEY POINTS
- Simelane defended her VBS Mutual Bank loan, saying it was necessary at the time.
- She criticized the DA’s stance on transformation, insisting change must continue.
- Her department plans to issue 140,000 housing subsidies and resolve the student accommodation crisis.
Human Settlements Minister Thembi Simelane has come under fire again for her past financial dealings, but she’s not backing down.
Addressing Parliament during the State of the Nation Address (SONA) debate, Simelane responded to criticism about her VBS Mutual Bank loan, which she used to buy a coffee shop in Sandton.
“Yes, I had a coffee shop because, at the time, [President Cyril] Ramaphosa had no financial scheme. I will now apply for it and ngiphinde (reinstate the business),” she told Parliament after Economic Freedom Fighters (EFF) MP Vuyani Pambo mocked her, saying she sounded like she was “in a coffee shop.”
The controversy stems from a R575,600 ($31,172) loan Simelane took in 2016 from the now-collapsed VBS Mutual Bank.
The bank became infamous for large-scale corruption, with several officials and politicians implicated in its fraudulent dealings. While some believe Simelane’s loan was part of the corruption scandal, she insists it was a legitimate business move.
Allegations of corruption and ANC’s internal review
Simelane, formerly the mayor of Polokwane, has long been linked to allegations of misusing funds, particularly with the VBS scandal.
During her speech, she lambasted the Democratic Alliance (DA) for opposing transformation efforts, while also defending herself against accusations of looting.
The minister previously testified before the African National Congress’ (ANC) integrity committee regarding her involvement in the bank’s affairs.
President Ramaphosa has stated that he needs more time to process Simelane’s submission before making a final decision on the matter.
The DA’s Sonja Boshoff took aim at the ANC’s race-based policies, saying they only benefit the elite and should be replaced with merit-based initiatives. She even suggested Simelane take up former U.S. President Donald Trump’s alleged offer to relocate to the United States.
Simelane brushed off the criticism, stating, “Transformation will go on despite the opposition.” She emphasized that her department is working to address key issues affecting South Africans, including housing and student accommodation.
Housing and student accommodation initiatives
The minister addressed plans to enhance residential accessibility, beyond the Simelane coffee shop loan matter.
She announced that the department intends to issue around 140,000 market subsidies under the First Home Finance (FHF) program to help middle-income earners secure housing closer to economic hubs.
Simelane explained that the program benefits citizens whose household income ranges from R3,501 ($189) to R22,000 ($1,191) per month. She explained the goal of this initiative is to stop additional housing areas from becoming segregated.
She also addressed the student accommodation crisis, which has sparked protests in Cape Town. The National Housing Finance Corporation (NHFC) has funded two fully black-owned developers to construct student residences.
One project in Belhar received R40 million ($2.1 million) to build 136 student beds. Another project in Parow, initially meant for affordable housing, received R170 million ($9.2 million)but has since been converted into a 927-bed student residence.
Additionally, Simelane promised that 80,000 title deeds would be issued within the next five years to help more citizens secure legal ownership of their homes.
As Parliament debates her past financial dealings, Simelane remains focused on defending her record and pushing forward with housing reforms.
