Ad-Hoc Committee
Documents and testimony examined at the parliamentary inquiry expose how Vusimuzi “Cat” Matlala — with a history of criminal links — secured a R360 million police-services contract despite red flags. The tender has since been cancelled after an audit found licence gaps, undisclosed franchise agreements and altered bid documents.
A parliamentary probe into corruption and contract irregularities within the South African Police Service (SAPS) has spotlighted the controversial contract awarded to businessman Vusimuzi “Cat” Matlala and exposed serious failures in due diligence, procurement oversight and institutional integrity. In June 2024, SAPS awarded a R360 million wellness-services tender to Matlala’s company, Medicare24, selecting it from 22 bidders. But during testimony before the Ad Hoc Committee investigating police corruption, SAPS procurement head Lieutenant General Molefe Fani acknowledged that the award should have been disqualified, and accepted that serious red flags were overlooked.
Key Problems in the Tender Process
Medicare24 lacked a valid operating licence at the time of bidding.
The company failed to provide required documentation about its supplier and facility arrangements, it bid under a franchise agreement without disclosing the third-party involvement, violating mandatory bid requirements.
The submitted pricing schedule differed from the original bid document, and a forensic review later found mismatched signatures, a clear sign of tampering.
At the time, SAPS did not conduct a criminal-background check on Matlala, despite his known criminal record and pending charges, meaning serious risks were ignored.
Allegations of Improper Influence and Kickbacks
Evidence presented during related hearings at the Madlanga Commission suggests that Matlala maintained close financial ties with senior police officials. A secret witness, identified as “Witness C”, told the inquiry that Matlala had admitted to making cash payments to senior officers, including Lieutenant General Shadrack Sibiya, in return for favouring his company in tenders.
According to this testimony, after every payment received from SAPS, a portion was handed over to Sibiya via a middleman, allegations that go to the core of institutional corruption and syndicate infiltration.
Matlala has also been linked to previous controversial deals and investigations, including those around a state-capture-linked health-services procurement process at a major public hospital.
Fallout: Tender Cancelled, Accountability Questioned
In January 2025, following mounting media scrutiny and internal audit findings triggered by the controversy, the R360 million tender was cancelled.
SAPS Chief Financial Officer Lieutenant General Puleng Dimpane revealed at the inquiry that the contract’s flagged irregularities had contributed significantly to irregular expenditure for the 2024/25 financial year, and warned that without effective consequence management, similar procurement abuses could recur. The revelations have dealt a serious blow to the credibility of SAPS procurement and added weight to calls for a forensic audit and criminal investigations into all those involved. Critics argue the debacle highlights systemic corruption, weak internal controls and a failure to separate criminal elements from state security procurement.
As the Ad Hoc Committee continues its hearings, the Matlala case may prove a defining moment in exposing how deeply criminal syndicates may have penetrated state institutions — and whether South Africa’s checks and balances can withstand the challenge.
