‘Cat’ Matlala to turn state witness after guilty plea in R360m SAPS tender scandal

Vusimuzi “Cat” Matlala has agreed to become a state witness after pleading guilty to fraud, corruption and money laundering in a Pretoria Specialised Commercial Crimes Court, the state told the court on Thursday. Under a negotiated plea and sentencing agreement, Matlala will testify about his own role and that of others in a case linked to a police health-services contract.

Terms of the plea and sentencing agreement

The state said the negotiated deal which took two months to conclude proposes that the court deviate from the prescribed minimum sentence and impose 15 years’ imprisonment, with seven years suspended. The suspension is conditional on Matlala deposing any statement required by the South African Police Service, testifying about his own involvement and that of others, and not committing another offence, the court heard.

The magistrate has not yet ratified the agreement and is not bound by it until he applies his mind. During Thursday’s hearing the magistrate raised concerns about who would care for Matlala’s minor children and gave the parties 30 minutes for Matlala to liaise with his ex-wife. He also asked about the conditions attached to the suspended portion of the sentence and how Matlala could be expected to be available as a state witness if he had been considered a flight risk.

Charges and the tender at the centre of the case

The charges arise from a health-services contract awarded by the South African Police Service to Matlala’s company, Medicare24 Tshwane District. The tender had been budgeted at roughly R360 million, but the state said the contract was ultimately concluded for about R228 million. The contract was awarded in June 2024 and cancelled in May 2025 after an internal audit flagged irregularities. By the time of cancellation, the state said, at least R50 million had already been paid out.

The state has alleged that police officials favoured Matlala and Medicare24 despite the company allegedly lacking the facilities, equipment and staff to deliver on the contract.

Co-accused and related proceedings

Matlala’s case was separated from that of his co-accused a day earlier, allowing him to be dealt with on his own. His co-accused include 12 senior police officers, suspended national police commissioner Fannie Masemola and Medicare24 managing director James Murray. Those accused are expected back in court on Friday.

The state said Matlala would plead guilty to fraud and to all counts of the money-laundering charges. The court heard an investigating officer’s affidavit referencing a payment of R300,000 to police officer Rachel Matjeng.

State and other official statements

The state read an affidavit from SAPS Chief Risk Officer Charity Matlou, the complainant, saying she understood the accused would plead guilty, that she had been informed of the charges against him and that she agreed with the deviation from the prescribed minimum sentence.

National Prosecuting Authority spokesperson Kaizer Kganyago confirmed that talks had taken place but said any agreement would only become binding once a magistrate had applied his mind to it.

Custody and separate criminal matters

Matlala remains in custody at the C-Max section of Kgosi Mampuru II Correctional Centre, where he is held as a high-risk inmate, the court heard. He also faces a separate trial on 25 charges, including 11 counts of attempted murder, arising from three shooting incidents allegedly committed between August 2022 and January 2024. That matter is scheduled to begin on 20 July.

The court will still decide whether to accept the parties’ proposed sentence after considering the concerns raised during the hearing.