The Polokwane Municipality has distanced itself from allegations against its former Mayor and current Justice and Constitutional Development Minister Thembi Simelane.
This comes amid allegations that Simelane has secured a loan of R500 000 from a company that allegedly brokered investments of nearly R350 million by the Polokwane municipality in the now-defunct VBS Mutual Bank in 2016.
Simelane was serving as a Mayor of Polokwane when she allegedly secured the loan.
She reportedly used the loan to purchase a coffee shop in Sandton, Gauteng.
The municipalitys spokesperson Thipa Selala admits that the municipality had invested money in VBS Mutual Bank but later withdrew it.