Civil society organisations and opposition parties have called on justice minister Thembi Simelane to urgently clarify corruption allegations against her regarding VBS Mutual Bank.
The bank imploded in 2018 and subsequent forensic investigations showed it gave kickbacks to politicians in exchange for loans from municipalities.
Freedom Under Law, The Ahmed Kathrada Foundation, Judges Matter and Defend Our Democracy are leading the charge for Simelene to explain as she is at the helm of state security agencies including the National Prosecuting Authority.
The Daily Maverick reported on Monday Simelane, while serving as mayor of Polokwane, made two unlawful investments into VBS Mutual Bank.
It is said these payments appear to be linked to kickbacks paid in exchange for the deposits into VBS Mutual Bank by the municipality. It is further alleged these bribes were paid to a company, which then used a significant portion of that money to pay towards a loan used for the purchase of a coffee shop by the minister.
It is crucial that the minister responds fully and transparently to these allegations
— Civil society organisations
The reports state Simelane claimed the transaction was a legitimate commercial loan that was fully repaid. However, neither the loan agreement nor proof of settlement of the loan have been provided.
“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 civil society organisations said in a joint statement.
“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 Mutual Bank, a critical entity in the allegations against her.
“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.”
Opposition parties GOOD and ActionSA have also called on President Cyril Ramaphosa to act against Simelane.
“It is untenable to have the minister of justice, responsible for protecting the rule of law, embroiled in the ongoing VBS fraud and corruption scandal,” GOOD said.
“The integrity of our justice system is at stake if the person tasked with upholding the law is potentially compromised by involvement in unlawful transactions linked to one of the most egregious corruption scandals that stole from the most vulnerable,” ActionSA parliamentary leader Athol Trollip said in a letter to Ramaphosa.
“Consequently I am raising this issue as it demands immediate and thorough investigation to preserve the credibility and impartiality of our justice system.”
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