The controversy involving President Cyril Ramaphosa in the Thembi Simelane loan affair centers on her R575,000 loan from Gundo Wealth Solutions, a company linked to the infamous VBS Mutual Bank scandal. Simelane received this loan in 2016 while she was the mayor of Polokwane, using it to start a coffee shop. Gundo Wealth, now implicated in facilitating illicit municipal deposits to VBS, allegedly benefited from government contracts, raising questions about conflicts of interest.

Ramaphosa’s role comes into focus as he reportedly knew about the loan when appointing Simelane as justice minister, leading to scrutiny about why he proceeded with her appointment. Critics, including the Democratic Alliance and other political factions, have pressured Ramaphosa to act, questioning whether Simelane's explanation and lack of documentation of the loan terms adequately address the ethical concerns. The president's office has stated that he is carefully reviewing her report to assess the integrity implications before deciding on any actions.