Both Cele and Police Minister Nathi Mthethwa have condemned the report that alleged Madonsela's company, Waweth, was paid R1.8-million while she worked full-time for the SA Law Reform Commission, and that her arrest was imminent.

Both men denied knowledge of any investigation of Madonsela, with Mthethwa saying he wanted "the truth".

Cele's office said yesterday: "With regards to the matter of the reported investigation into Advocate Thuli Madonsela, the national commissioner is doing all in his power to establish the true facts."

Justice Minister Jeff Radebe rejected outright that there was any investigation of Madonsela. He said there had been an inquiry into a possible conflict of interest at the time Madonsela was operating a business while rendering a service to his department.

His office had twice investigated whether Madonsela had a duty to disclose that she was operating a profitable business while serving as a member of the commission, and she had been cleared of any wrongdoing.

"This means the inquiry is consequently closed," said Radebe, adding that Madonsela "did not violate any prescripts or laws".

He emphasised that at no stage had his department reported the matter to the police for criminal investigation.

The newspaper report on Wednesday was "most unfortunate and unsettling".

He defended Madonsela, saying: "This office, together with other democracy-supporting institutions, must always be supported and protected by all of us and not be attacked or undermined through the employment of tactics of whatever manner."

Radebe said the Public Protector must enjoy the confidence of all South Africans.

"For this to be safeguarded, all of us must work towards strengthening and supporting it as opposed to attacking and weakening it in the process."

Madonsela's investigations into police headquarters leases worth R1.6-billion, for buildings in Pretoria and Durban, found that Cele and Public Works Minister Gwen Mahlangu-Nkabinde were guilty of improper conduct.

She has dismissed the Star newspaper report that claimed she was wanted for fraud and corruption as "baseless" and "malicious".

She has questioned the timing of the article - which was published on the day she was expected to release the second report into the Durban police lease - saying it was designed to scupper her investigations into the deals signed with businessman Roux Shabangu.

The Presidency echoed Radebe's statements yesterday, saying that Madonsela's office should be "respected and given space to do its work".

"The Public Protector as an institution of state should be allowed to do its work without fear or favour and without hindrance," said President Jacob Zuma's office.