Revealed: Simelane’s VBS-linked coffee shop ‘loan agreement’ likely backdated

Caption: An extract of section two of the alleged ‘loan agreement’. The tone, tense and meaning of section 2.3 contradicts the content of the purported agreement and the signature date of 30 September 2016.

By Pauli van Wyk (Daily Maverick) and Kyle Cowan (News24)

30 Sep 2024

The 'loan agreement’ that justice minister Thembi Simelane is relying on to validate the R575,600 benefit she received in 2016 from a corruption-accused fixer for VBS bank appears to have been backdated. Dodgy dates and timeline of events suggest a faked contract. Her recent explanation to Parliament of the circumstances around the ‘loan’ repayment further contradicts the requirements of this purported agreement.

Glaring inconsistencies in Thembi Simelane’s coffee shop “loan agreement” with VBS corruption accused Ralliom Razwinane suggests the document was drafted after it was purportedly signed.

Daily Maverick and News24 have obtained a copy of the alleged “loan agreement”, ostensibly signed by Simelane and Razwinane on 30 September 2016 – a document Simelane has so far steadfastly refused to make publicly available.

The document confirms that Simelane, while she was mayor of Polokwane Municipality in 2016, took an alleged “loan” of R575, 600 from Razwinane’s company, Gundo Wealth Solutions, a service provider to her municipality, to buy Silvana’s Coffee Shop in Sandton.

A careful reading of the document’s content shows that the agreement includes an acknowledgement by Simelane and sets out the payment dates and repayment timeline. It is written on plain white paper with no company logos, director information or official-looking markings in the header or footer of the page.

Closer examination reveals that a critical section of the document in which the payment dates are discussed includes two consecutive paragraphs, written in the future and past tense, that appear to contradict the date the document was signed.

These inconsistencies are compounded by the unknown author’s apparent foresight and knowledge of events following the signing date of 30 September 2016.

Sources close to Razwinane have confirmed the location, timing and circumstances of where and how the document first surfaced. We cannot fully disclose the details in order to protect sources. It is clear, however, that the “loan agreement” was first seen only years after Gundo bought Simelane the coffee shop.

Asked whether she faked the document, Simelane through her spokesperson said: “… The minister has noted your questions, and she will not be making any further comments on the matter of a document she did not circulate.”

Razwinane read but did not respond to questions sent to him last week. He was asked to comment on the inconsistencies in the loan agreement and whether he conspired with Simelane to backdate and fake the loan agreement, whether he disagreed with any of the issues raised about the agreement, who drew up the agreement and whether he denied that Simelane received a gratuity or benefit from his company, Gundo, in contravention of anti-corruption laws.

The unlawful and intentional faking and passing off of a bogus document to the potential or actual harm of another are two offences under South African legislation termed “forgery” and “uttering”.

The ‘loan agreement’

The 10-page “loan agreement” lists Simelane’s company T5 Investment Group as the borrower of R575, 600 from lender Gundo Wealth Solutions. The document purports to be signed on 30 September 2016, first by Simelane and second by Razwinane.

Simelane in Parliament An extract from the last page of the alleged ‘loan agreement’. Simelane’s signature appears to be a replica of her signature on other documents. Razwinane’s signature similarly appears in other documents he previously signed. The handwriting appears similar to samples we have seen from Razwinane.

The document lists 11 sections. Section two details the “advance of capital”.

The paragraph opens with: “It is hereby recorded that the lender [Gundo] agrees to make a loan available to the borrower [Simelane’s T5 Investments]…”

The following sentence, section 2.2, states: “The capital being advanced or the principal debt is the sum of R575,600.00 and same will be paid into the account of the borrower within five days of the agreement being signed by all parties.”

The wording is future looking and speaks of a sum that is yet to be paid into the account of Simelane’s T5 Investments.

In contradiction with the style and content of the entire agreement, the next paragraph is written in the past tense. Its meaning conveys that the R575,600 had already been paid – a fact acknowledged by Simelane as the borrower.

Section 2.3 reads: “The borrower hereby acknowledges that the loan amount, at the time of signing this agreement has been advanced to its nominated account of Silvana Bistro Lounge in two payments as follows:

“2.3.1 R300,000 on 14 October 2016, and;

“2.3.2 R275,600 on 17 October 2016.”

Section 2.3 does not only contradict the sentence preceding it, it also stands in opposition to the 30 September 2016 signature date at the bottom of the document.

If Simelane only signed the document in September 2016, it appears improbable that she could have “acknowledge[d] that the loan amount … has been advanced” in October 2016 – a month later.

If Simelane and Razwinane truly signed the document on 30 September 2016, it also appears improbable that both parties could have been certain that the alleged “loan” would be split into two payments, paid on two different dates in October 2016.

Another red flag is that the coffee shop payments were linked to kickbacks VBS paid to Gundo. It is therefore equally improbable that Razwinane could have been certain enough of the dates he would receive those payments to ink it into a contract.

The facts contained in this agreement do not correlate. The purported loan agreement appears to have been drafted at the date after Gundo paid for the coffee shop.

An extract of section two of the alleged ‘loan agreement’. The tone, tense and meaning of section 2.3 contradicts the content of the purported agreement and the signature date of 30 September 2016.

Hawks investigation possible trigger for the need to make the deal look legitimate

About two years after VBS Mutual Bank was put under curatorship, on 3 June 2020, Lieutenant Colonel Anton White, commander of the serious corruption investigation task team in Limpopo, sent a two-page letter to the municipal manager at Polokwane Municipality.

White asked for a long list of documents, proof of payments and bank statements linked to the municipality’s unlawful R349-million investment with VBS. White required all of it under oath, in an affidavit.

Daily Maverick and News24 have learnt that the letter caused panic among Polokwane officials. Simelane was, at the time, still mayor.

Sources with knowledge of events at Polokwane municipality at the time said that in addition to the Hawks poking around, discussions around and an eventual letter dated 9 October 2020 from the Limpopo Treasury added significant pressure.

The letter referred to the recommendations of the 2019 BDO investigations report, which made serious findings against a number of Polokwane municipal officials and a minor finding against Simelane. The provincial purse-holder requested a status update on the implementation of the BDO recommendations.

On the very same day her municipality received this letter from the Limpopo Treasury, Simelane repaid the first instalment of the Silvana’s “loan”, she told Parliament on 6 September 2024.

MPs took a dim view on this timeline of events, suggesting Simelane paying back a “loan” four years later on the same day the provincial treasury insisted on answers could not be entirely coincidental.

ActionSA MP Athol Trollip seized on this revelation, saying the timing of the first repayment to Gundo was “a massive red flag”.

“It could seem that it was as a result of the report and the fact that it was now a hard-hitting report impacting many, many people, that the repayments were suddenly made. And I’d ask you to comment on those, because it does seem beyond coincidental that the same day you received the report is the day that you make the payment. And if that is not the case, then why were payments not made before that day?” Trollip asked.

Simelane replied that, in her view, it would have been “very wrong” for her to have suddenly started making repayments on the loan after being informed of the BDO investigation and that she was expected to appear before the BDO investigators to answer questions.

This is an odd statement, because the “loan agreement” only requires repayments “commencing on 10 September 2020”, and the BDO investigation was initiated late in 2018 and the report finalised in March 2019.

Worse, however, is that seconds later in responding to a question from another MP, Simelane explained that the long period between the granting of the loan and repayment was due to the fact that Gundo could not loan her the entire purchase price of the coffee shop.

There was a shortfall she explained, of R232,000, that she first had to pay off to Ricovert, the former owner of the shop.

“There is nothing wrong with the timing in terms of the payment [of the loan],” Simelane insisted to MPs.

In total, Simelane told Parliament, she repaid around R849,000 in three payments starting in October 2020. She has yet to provide bank statements or any other proof of the repayment, despite multiple requests by Daily Maverick and News24. DM

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The ‘loan agreement’

Hawks investigation possible trigger for the need to make the deal look legitimate