Freedom Under Law (FUL), The Ahmed Kathrada Foundation, Judges Matter and Defend Our Democracy note with concern media reports alleging that the Minister of Justice and Constitutional Development, Thembi Simelane, was connected to unlawful investments in VBS Mutual Bank during her tenure as mayor of Polokwane in 2016.  

According to the reports, during 2016 and while the Minister was serving as mayor of Polokwane, the Polokwane Municipality made two unlawful investments into the since-collapsed VBS mutual bank. It is said that these payments appear 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.

The reports state that the Minister has claimed that the transaction was a legitimate commercial loan which was fully repaid. However, neither the loan agreement nor proof of settlement of the loan have been provided.

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 into such a loan in the first place, considering the apparent connection to unlawful deposits into VBS bank by the same municipality in which she was mayor.

It is crucial that the Minister responds fully and transparently to these allegations. Perceptions of corruption and conflicts of interest cause significant harm to public confidence in governance institutions and the rule of law. 

The Minister carries political responsibility for key law enforcement agencies which not only are at the forefront of the fight against corruption, but are also involved in investigating and prosecuting the collapse of VBS bank itself, a critical entity in the allegations against the her. She will also take up her position on the Judicial Service Commission at its next sitting in early October. There can thus be no question marks over the Minister’s probity and ethics. 

South Africa has, on far too many occasions in recent years, suffered the effects of compromised individuals having a negative impact on the justice sector, and from the ravages of corruption. We continue to see the harm caused to governance institutions by unsuitable individuals, and how difficult it is to repair the damage they cause. 

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.