South Africa's justice minister has denied allegations of corruption in connection with the VBS Mutual Bank scandal, where thousands of retirees lost their life savings. The bank, which primarily served retirees from Limpopo province, was declared bankrupt in 2018 after it was revealed that over 2 billion rand had been stolen.
An investigation uncovered that funds from the bank were misused to purchase luxury items and make financial contributions to various individuals and organizations, including political parties. The justice minister, who assumed office in June, has been accused of receiving a loan from a company involved in brokering unlawful investments for VBS.
Despite calls for her removal, the minister maintains that the loan was legitimate and has been repaid with interest. She denies any conflict of interest in overseeing corruption cases related to VBS as the justice minister.
President Cyril Ramaphosa, who has pledged to combat corruption, has requested an official response from the minister regarding the allegations. He emphasized that the matter will not be overlooked.
Several individuals involved in the bank's collapse have already been convicted, shedding light on the scheme to embezzle funds. The former bank chairman received a 15-year prison sentence after cooperating with authorities and revealing details of the operation, including donations made to a political party.
Investigations into the VBS Mutual Bank scandal are ongoing as the government continues its efforts to hold those responsible for the financial misconduct accountable.
