Johnathan Paoli
Mzansi will have to wait until Wednesday to hear whether the Pretoria Specialised Commercial Crimes Court will accept a proposed plea-and-sentence agreement under which controversial businessman Vusimusi “Cat” Matlala has admitted guilt and agreed to cooperate with the State in the R228.6 million SAPS-Medicare24 tender scandal.
Reserving judgment in Tshwane on Thursday, Magistrate Ignatius du Preez said he was not yet in a position to decide whether the proposed sentence was just, after Matlala tendered guilty pleas to fraud, corruption and money laundering in the case.
“We have reached a stage of proceedings where the court, with due regard to the inputs provided, the various exhibits and submissions given, that I must make a decision as to whether the sentence agreement is a just sentence. I am not in a position today to make a finding as to whether it is indeed a just sentence. I’ve been provided quite a voluminous document. I need to consider the various aspects mentioned there,” Du Preez said.
He ordered both the State and Matlala’s legal team to submit the full judgments of authorities cited during argument by Friday, after which he is expected to rule on whether the agreement complies with Section 105A of the Criminal Procedure Act.
Du Preez stressed that Matlala has not yet been convicted.
“The accused has not yet been convicted of any of the counts. The judgment will only follow if the court finds that indeed it is a just sentence,” he said.
The plea agreement records guilty pleas by Matlala and his companies, Medicare24 Tshwane District and Luxo Africa Brand Investments, to seven counts including fraud, corruption and money laundering.
According to the agreement, Matlala admitted that the R228.6 million SAPS health services tender was secured through fraud and misrepresentation.
The agreement details how Medicare24 Tshwane District misrepresented its infrastructure, personnel, business addresses and operational capabilities during the bidding process.
It states that Matlala knowingly collaborated with SAPS bid evaluation committee member Captain Brian Cartwright, who allegedly provided confidential procurement information in exchange for payments.
The plea document also outlines how Matlala admitted that the tender arrangement involved a fronting scheme designed to circumvent broad-based Black economic empowerment requirements.
The agreement records that SAPS ultimately paid Medicare24 more than R50.3 million before the contract was cancelled.
Matlala also admitted to corruption involving suspended SAPS Quality Management head, and his former lover, Brigadier Rachel Matjeng.
According to the plea agreement, Matjeng allegedly facilitated purchase orders and referrals that enabled Medicare24 to invoice SAPS, while receiving R300,000 in bribes paid in three instalments of R100,000 between January and March 2025.
In exchange for Matlala’s guilty pleas and cooperation, prosecutors agreed to seek a deviation from the prescribed minimum sentence.
The proposed sentence would see all counts taken together for sentencing purposes, with Matlala receiving 15 years’ direct imprisonment, seven years of which would be suspended for five years.
The suspension would be conditional on Matlala providing sworn statements when requested, testifying honestly and fully in future criminal proceedings, and not committing further offences.
According to the agreement, he has already provided a draft affidavit implicating “several high-profile people” and supplied corroborating documentation.
Addressing the court, prosecutor Santhos Manilal said the negotiations took almost two months and involved extensive verification of information supplied by Matlala.
“The accused himself had to secure documentation to corroborate whatever is indicated in the affidavit. That affidavit itself, in terms of what is contained and who is implicated in this contract, further individuals, further high-ranking individuals who have been implicated,” Manilal said.
He said that the plea agreement would allow authorities to pursue senior police officials allegedly involved in corruption.
“For the first time, the State will be able to pursue very high-ranking officials who were in charge of protecting this country. We have an accused who has come forward and has given us detail that we would not have been made aware of. That evidence we would not have been able to obtain,” he said.
Defence counsel Angus Mackenzie said that Matlala’s cooperation would serve the interests of justice.
“We acknowledge that the crimes committed were severe. But as the State put it, we submit that the interests of justice would be served if this agreement is allowed to proceed and Mr Matlala cooperates as he’s undertaken to do with the State,” Mackenzie said.
Mackenzie said Matlala had not only provided a statement but had also supplied documentary proof to assist investigators.
Matlala’s attorney Hlawu Maluleke also urged the court to consider Matlala’s remorse and willingness to cooperate.
“The conduct of the accused person before this court shows and demonstrates somebody who arrives at this court partially rehabilitated. He instructed me to commence discussions with the State. He was not coerced by anybody,” Maluleke said.
The attorney said Matlala could have simply pleaded guilty and left matters there, but instead chose to cooperate with the State.
Magistrate Du Preez postponed the matter to Wednesday at 8.30am.
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