The Economic Freedom Fighters (EFF) wants Minister of Justice and Constitutional Development Thembi Simelane to immediately resign following her alleged involvement with Mutual Bank VBS, and also called on law enforcement agencies to act swiftly in holding her accountable.

The party noted that her resignation was the “only appropriate course of action” to preserve the integrity of the justice system and to allow for an independent and impartial investigation into her actions.

Media reports have stated that while serving as the mayor of Polokwane in 2016, Simelane took a "commercial loan" of R575 600 from Gundo Wealth Solutions, a company that brokered “unlawful” investments of R349-million into VBS Bank on behalf of the Polokwane municipality.

The party highlighted that Gundo Wealth Solutions owner Ralliom Razwinane who is currently on trial for fraud and corruption in relation to this scandal, was part of a series of corrupt transactions rewarded with kickbacks amounting to R24.2-million for facilitating these illegal investments.

It further noted that Gundo Wealth Solutions signed a three-year contract with the Polokwane municipality to provide investment brokerage services, services which the EFF said facilitated the unlawful channelling of millions into VBS.

“Shortly after securing two deposits totalling R130-million from the Polokwane municipality in October 2016, VBS sent Razwinane a payment of R1.66-million, who then funnelled R575 600 to Simelane through a company named Ricovert, which then owned the Silvanas Coffee Shop in Sandton,” the EFF said.

It further pointed out that this payment was then used by Simelane to purchase the coffee shop, which the party noted was a clear indicator of her direct benefit from the corrupt activities surrounding VBS.

“Simelane's actions are not merely unethical; they are criminal. The funds she received were corruptly siphoned from the very public coffers she was entrusted to protect,” the EFF added.

The party said its Commander-in-Chief Julius Malema first alerted the nation to what it termed shocking abuse of power by Simelane, during a press conference of the Progressive Caucus on July 18.

The party pointed out that as mayor, Simelane played a pivotal role in enabling “unlawful” deposits into VBS Bank, deposits which the EFF said were part of a larger scheme involving multiple municipalities and State entities across South Africa.

The VBS scandal saw over R2-billion looted, devastating the lives of thousands of ordinary South Africans, many of whom lost life savings in this fraudulent scheme, the party added.

The EFF said Simelane, while serving as mayor, was entrusted with safeguarding public funds, yet she chose to engage in “corrupt” dealings, exploiting her position for personal gain.

“This is a clear pattern of behaviour - a track record of corruption that has now followed her into her role as Justice Minister,” the EFF explained.

The EFF said Simelane’s continued presence in this role threatened the integrity of investigations of VBS and undermined the pursuit of justice.

Last month, former VBS board chair Tshifhiwa Matodzi said the EFF received monthly donations since 2017, and a so-called business loan of millions of rands, from VBS, through a front company, Sgameka Projects.