Gundo Group has distanced itself from Gundo Wealth Solutions, a company owned by businessman, Ralliom Razwinane, who is alleged to have loaned current Minister of Justice and Constitutional Development, Thembi Simelane more than R500 000 loan which according to media reports, she used to purchase a coffee shop in Sandton.
At the time of the transaction, Simelane was still a mayor of the Polokwane Municipality. The City had invested around R350 million in VBS Bank.
Simelane had previously said that the money was a loan and that she has paid the money back, however, she was yet to provide proof of this.
Responding to ‘The Star’, CEO of Gundo Evolution, Lindelani Tshivhase said Gundo Group, a company with interests in logistics, freight and plant machinery, has no association with Gundo Wealth Solutions and the looting of the VBS funds as reported in the media.
“It has recently come to our attention that the company, Gundo Wealth Solutions, involved in the VBS matter as mentioned in an article dated 12 April 2019 and in the recent news updates on ‘Morning Live’ SABC 2 is being associated with our organisation, Gundo Group.
“The Gundo Group of Companies would like to unequivocally distance itself from any relationship, association, or link that may be insinuated between our organisation and Gundo Wealth Solutions, a company currently under investigation in connection with the VBS matter,“ Tshivhase said on Tuesday.
Tshivase said the two companies are linked only by name as this is a common Tshivhenda name that has been used by other business owners.
It was reported at the weekend that Simelane took a loan of more than half a million rand from a company that brokered unlawful investments of R349m into VBS Mutual Bank by the Polokwane Municipality while she was mayor of the city in 2016.
That company has been fingered as Gundo Wealth Solutions, currently under investigation by law-enforcement agencies over their involvement in the collapse of the mutual bank.
Tshivhase said it was important to clarify the confusion as more and more people are linking the two companies with each other when in fact they are not related in any way.
“We recognise that the name ‘Gundo’ is a common Tshivenda name that means ‘Victory’, and it is important to clarify that this shared name does not imply any connection or association between Gundo Group and its associated companies with Gundo Wealth Solutions
“The Gundo Group of Companies operates independently under the following entities: Gundo Logistics and Projects, GMP Plant, Gundo Evolution, Gundo Bulk Logistics and Gundo Freight. We confirm that none of these entities have any business, financial, or operational ties to Gundo Wealth Solutions or VBS, as a matter of fact.
“Furthermore, the shareholders and directors of Gundo Wealth Solutions, including Mr Ralliom Razwinane, have no affiliations with the directors of Gundo Group and/or its associated companies or any of its subsidiaries or shareholders.
“We remain committed to transparency and integrity in all our business dealings and continue to focus on providing excellent services to our clients across all sectors,“ she said.
In 2021, Raziwane and two other accused were each granted bail of R50 000 while four other accused were each released on R100 000.
Meanwhile, the Activists and Citizens Forum (ACF) has called for Simelane’s head.
ACF spokesperson Dennis Bloem said President Cyril Ramaphosa should place the minister on special leave and institute an investigation into the serious allegations against her.
“The allegations against the minister are extremely serious and disturbing and cannot be treated lightly. It is alleged that the minister took a half a million rand loan from VBS Bank-accused investment broker.
“We are not implying that Minister Simelane is guilty of any wrongdoing. Our call is to safeguard and protect the integrity of the office she occupies. The VBS heist has caused pain and hardship amongst the poor people of Limpopo. Many people have lost their hard earned savings.
“Many people were driven further into poverty because of greedy, selfish criminals, including some political and community leaders,” Bloem added.
He said Simelane should show leadership by clearing her name and coming forth with the relevant proof of the loan and proving that the loan was fully paid off, adding that he believed she should subject herself to an investigation as nobody was above the law.
On Monday, the DA and ActionSA called for the minister to account for her alleged involvement in the VBS matter.
ActionSA has requested that an independent investigation be conducted into revelations around Simelane. The party also lodged an urgent complaint with the public protector against Simelane.
“Should the Public Protector conclude that there is enough evidence of wrongdoing, ActionSA will request President Cyril Ramaphosa to immediately remove Simelane from her position as Justice Minister,” the party said.
The Star