Department acts after investigation finds hospital facility was never legally declared surplus.
The Department of Public Works & Infrastructure terminated a lease agreement with Medicare 24 Tshwane District on Friday morning, following serious allegations about the award of the contract to a company linked to Vusimuzi “Cat” Matlala.
Public Works & Infrastructure Minister Dean Macpherson on Friday confirmed the termination of the lease for a hospital facility in Pretoria West after an internal investigation revealed critical legal irregularities.
According to Macpherson’s department, the probe found that the hospital facility was never declared surplus by the South African Police Service, which remains the designated user of the property.
The allegations came to light through testimony in the Parliamentary Ad hoc Committee and an investigation by a South African media company, which detailed how Medicare 24 Tshwane District allegedly circumvented standard procurement processes to secure the lease.
Matlala was reportedly the company’s owner and was formerly listed as a director.
ALSO READ: Matlala’s company evicted over more than R200k in unpaid rent
Legal requirements not met
The investigation determined that the lease agreement, which was entered into with Medicare 24 Tshwane District in December 2023, could not lawfully come into operation due to a fundamental procedural failure.
“Departmental records indicate that SAPS requires the hospital facility for service delivery purposes. The formal declaration of the hospital facility as surplus is a necessary precondition for any lease to take lawful effect,” the department stated.
Under the Government Immovable Asset Management Act of 2007, SAPS remains the designated user of the facility.
The formal declaration of the hospital facility as surplus is a necessary precondition for any lease to take lawful effect, and without this declaration, the agreement could not be legally implemented.
Given these findings, the department issued a notice of termination of the lease agreement with immediate effect on Friday morning to ensure legal certainty and compliance with applicable legislation and governance frameworks.
ALSO READ: Too close for comfort? Cat Matlala transfer sparks allegations against senior official
Commitment to accountability
Macpherson said swift action was necessary to protect state assets and prevent the misuse of public resources.
“As soon as I learnt of the serious allegations raised, I requested a thorough investigation by the department of Public Works & Infrastructure, which found that the property had not been declared surplus by Saps and that the lease agreement could therefore not be implemented,” he said.
Additionally, the minister emphasised his commitment to ensuring proper stewardship of government property.
“I instructed that a termination of the lease be issued to prevent any wastage of public funds. As a department, we can never tolerate the abuse of state resources,” Macpherson said.
ALSO READ: Is the ‘construction mafia’ battle being won?
Complicit officials to be held accountable
The department pledged to launch an extensive internal investigation to identify and hold accountable any officials who were involved in authorising the lease.
Macpherson indicated that cooperation with law-enforcement agencies would be essential to the process.
“We will now embark on an extensive internal investigation to ensure that any officials who played a role in authorising this lease are held accountable. We will also work closely with law-enforcement agencies and hand over any information relating to possible criminality to ensure that those responsible face the full might of the law,” he said.
The minister concluded by reaffirming the department’s determination to eliminate corruption and restore integrity to its operations.
“We are working decisively to rid the Department of Public Works & Infrastructure of corruption and abuse, and to ensure that it delivers meaningfully for the South African people,” Macpherson said.
READ NEXT: Verulam temple collapse linked to substandard materials, lack of building plans – Public Works
