Civil society organisations Freedom Under Law (FUL), the Ahmed Kathrada Foundation, Judges Matter and Defend Our Democracy on Tuesday called on Minister of Justice and Constitutional Development Thembi Simelane to “fully and transparently” respond to the recent Mutual Bank VBS allegations levelled against her.

In a joint statement, the organisations said perceptions of corruption and conflicts of interest cause significant harm to public confidence in governance institutions and the rule of law.

Reports stated that Simelane, while serving as mayor of Polokwane, made two unlawful investments into the since-collapsed VBS Mutual Bank.

It is said that these payments appeared to be linked to kickbacks paid in exchange for the deposits into VBS by the municipality. 

It is further alleged that these kickbacks were paid to a company which then used a significant portion of the kickbacks to pay towards a loan which was used for the purchase of a coffee shop by the Minister.

Simelane has claimed that the transaction was a legitimate commercial loan which was fully repaid.

However, the organisations pointed out that neither the loan agreement or proof of settlement of the loan have been provided.

The organisations said in recent years South Africa has, too often, suffered the effects of compromised individuals having a negative impact on the justice sector.

“We continue to see the harm caused to governance institutions by unsuitable individuals, and how difficult it is to repair the damage they cause,” they said.

“Further questions arise too; even if there was a loan which was settled in full, the facts in the public domain raise serious questions about whether it was appropriate for the Minister to have entered such a loan in the first place, considering the apparent connection to unlawful deposits into VBS Bank by the same municipality of which she was mayor,” said the organisations.

They pointed out that Simelane has the political responsibility for key law enforcement agencies which are involved in the fight against corruption and in investigating and prosecuting the collapse of VBS Bank.

The organisations also pointed out that Simelane will sit on the Judicial Service Commission in October. 

“We therefore call for the Minister to account fully for her involvement in the incident. It would be untenable for such serious allegations against a Minister in such an important portfolio to remain unanswered,” they pointed out.