Health MEC Nomagugu Simelane threatens legal action over 'false and malicious' corruption claims linked to family business

KwaZulu-Natal Health MEC Nomagugu Simelane has denied allegations that she used her political position to influence funding for a company linked to her family, describing the claims “false and malicious.”

This follows a call by the uMkhonto weSizwe Party (MK Party) for Simelane’s immediate resignation, citing alleged corruption and political patronage. The party claims that her family business, Kwazi-Gugu Investments CC, received duplicated payments totaling R1.42 million from the provincial Agriculture Department, and linked her to a controversial farm loan granted in 2008 by Ithala Bank.

The party also alleged that financial benefits to her family continued during her tenure as Health MEC, even as healthcare services reportedly declined.

In a statement, the MK Party said it viewed the matter with “deep concern and serious disappointment at the troubling revelations recently brought to light.”

Simelane issued a statement to set the record straight. 

“The company in question was established in 1996 by my parents, and I resigned from it in 2004. I have no business interests in it. I have never benefited from any of its dealings.”

She explained that the company received financial support from a state-owned development finance institution years before she held any position of authority. 

“Furthermore, the company in question received a loan from Ithala Bank in 2008. At that time, I was a junior official in Government, with no authority or influence over Ithala or any funding decisions.”

Addressing claims tied to her time in the legislature, Simelane clarified the timing of her roles and their relevance to the allegations. 

“I served as Chairperson of the Portfolio Committee on Agriculture and Rural Development from 2016 to 2019. The funding in question relates to a period specifically between 2014 and 2016, when I was NOT the chairperson of the Committee. I only became the chairperson of the portfolio committee after June 2016.”

She also highlighted the constitutional principle of separation of powers, pointing out that Members of the Provincial Legislature (MPLs) do not participate in departmental procurement processes:

“In our system of government, the Separation of Powers is clear: MPLs, including committee chairpersons, have no role in Supply Chain Management or operational decisions of Departments. Therefore, I could not have influenced any procurement processes.”

Simelane described the allegations as politically motivated, saying:

“These facts are easily verifiable, and their deliberate distortion shows that this is not an attempt to inform the public; but rather a well-calculated political smear campaign.”

She confirmed she is compiling a full report on the matter to submit to the Premier and the ANC and is also exploring legal action:

“I remain committed to ethical leadership. I am currently writing a detailed report on the allegations levelled against me, to the Premier and to my organisation, the African National Congress.”

“I am also exploring legal action to protect my name and my integrity, and take to task those who deliberately and nefariously wish to impugn my good name.”

hope.ntanzi@iol.co.za 

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