By Johnathan Paoli
Tenderpreneur, attempted murder-accused and alleged criminal kingpin Vusimusi “Cat” Matlala alongside his two companies Medicare24 Tshwane District and Luxo Africa Brand Investments are set to rejoin the other accused in the R228 million Medicare24 corruption case next Tuesday.
Matlala made a brief appearance in the Pretoria Specialised Commercial Crime Court on Friday, where proceedings were postponed to 29 September.
His matter was previously separated from that of the other accused after he entered into a plea-and-sentence agreement with the prosecution under which he would testify against his former co-accused.
The agreement proposed an effective eight-year prison term, but the court found the sentence too lenient and indicated that an effective 12-year term would be appropriate.
Matlala declined the heavier sentence and subsequently withdrew from the agreement.
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The case centres on the alleged irregular awarding of a three-year SAPS health-risk management contract to Medicare24 Tshwane District.
The contract, awarded in June 2024, was valued at about R228 million and was intended to provide medical services to police employees.
These included medical assessments, wellness screening, injury-on-duty assessments and medical surveillance.
More than R50 million was paid before the contract was cancelled amid concerns over the procurement process.
Investigators have alleged corruption, fraud, money laundering and collusion in the procurement process, while a SAPS audit identified concerns including alleged misrepresentation and fronting. Some police officials were also charged with alleged breaches of the Public Finance Management Act.
According to evidence previously given to Parliament’s ad hoc committee by suspended National Police Commissioner Fannie Masemola, who was himself later charged over alleged PFMA contraventions linked to the tender, then Police Minister Senzo Mchunu raised concerns about the contract in December 2024 following media reports and requested that SAPS review the procurement process.
A preliminary internal-audit report dated 30 January 2025 identified red flags relating to the bid-evaluation process.
The contract was later terminated by SAPS, while IDAC launched a criminal investigation into the circumstances surrounding its award.
The criminal case has since expanded to include Matlala, his companies and a number of current and former senior police officials.
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In March this year, IDAC arrested 12 senior police officers and businessman James Murray, a company director, in connection with the investigation.
Matlala, who was already in custody in a separate attempted-murder case, subsequently appeared in court alongside the accused.
Masemola was later charged with four alleged contraventions of the PFMA relating to the Medicare24 tender.
Those charges were withdrawn earlier this month following a review of the evidence by the National Prosecuting Authority.
The National Director of Public Prosecutions found there were no reasonable prospects of a successful prosecution against Masemola.
