The state has proposed a 15-year prison term, with seven years suspended.
Tenderpreneur Vusimusi “Cat” Matlala has turned state witness after reaching a plea deal with the state.
He has also pleaded guilty to corruption, fraud, and money laundering charges.
Matlala appeared before the Specialised Commercial Crimes Court in Pretoria on Thursday, 25 June 2026, following the separation of his trial a day earlier.
This relates to a R228 million contract awarded to his company, Medicare24 Tshwane District.
Reports previously indicated discussions between Matlala’s legal team and the Investigative Directorate Against Corruption (Idac) regarding a potential plea deal.
Cat Matlala pleads guilty to crimes
During Thursday’s proceedings, state prosecutor Santhos Manilall, reading out an affidavit by Idac senior investigator Suneel Bellochun, told the court that the agreement was reached on 22 June, with Matlala pleading guilty to all charges.
The businessman also confirmed the arrangement as outlined in the plea deal.
“The accused and the state further agree that this plea and sentence agreement relates only to this specific contract and to the amounts set out in the current charge sheet.
“For the avoidance of any doubt, any monies that the accused received in relation to matters which are not a result of the Medicare health services contract, as set out in this charge sheet, are expressly excluded.
“If, at any stage, it is discovered that further possible offences have been committed, the state reserves its right to investigate and prosecute such offences,” Manilall said.
Matlala was among 17 accused facing charges relating to a controversial R360 million health services tender with the South African Police Service (Saps).
The case also involves suspended national police commissioner Fannie Masemola.
Investigations found the tender to be irregular, with at least R50 million being paid out before it was ultimately cancelled in May 2025.
‘Invaluable’ cooperation
Manilall indicated that Matlala has agreed to be a state witness and would implicate high-ranking individuals.
“Accused one has fully cooperated with authorities over a period of time.
“He has agreed to give evidence as a state witness in a criminal trial that could follow,” the prosecutor told the court.
The 49-year-old tenderpreneur has further implicated “high-profile” individuals who “facilitated the commission of the offences”.
It was further argued that it was in the interest of justice for Matlala’s plea agreement to be approved by the court, emphasising that his cooperation has been “invaluable” in exposing and enabling further action against corrupt activities within Saps.
“Accused one has pleaded guilty and chose the blame for his conduct.
“He has illustrated remorse by pleading guilty and acknowledges ultimately that the offences have been detrimental to society.
“Accused one has not wasted the court’s time by going through a protracted trial.”
15-year sentence
Manilall urged the court to depart from the prescribed minimum sentence, proposing 15 years’ imprisonment, with seven years suspended.
This means Matlala would effectively spend eight years in prison.
Additionally, the state recommended that his companies – Medicare24 Tshwane District and Luxo Africa Brand Investments – be fined R1 million each, with the fines suspended for five years, provided no similar offences are committed.
Any criticism of the sentence as being too lenient would ultimately be justified by imminent arrest of senior police officials, adding that the prosecution was focused on the “bigger picture”.
According to the prosecutor, the discussions were far from “easy”, necessitating intervention by Idac head Andrea Johnson, with National Director of Public Prosecutions (NDPP) Andy Mothibi aware of the process.
“The sentence that has been negotiated has taken almost two months to reach this point,” Manilall remarked.
Meanwhile, Matlala’s lawyer, Hlawu Maluleke, emphasised that sentencing should align with his “partial rehabilitation”, adding that the businessman had, from the outset, conducted himself in an open and cooperative manner.
“At the end of the day, the accused remains a witness of the state, and it is something that he did of his own volition.
“He could have opted to just provide the plea and walk away from this matter.”
The matter was postponed to 1 July for a ruling on the plea agreement.
Saps-Medicare24 tender
According to the state, Medicare24 Holdings managing director James George Murray and Captain Brian Cartwright are accused of assisting Matlala in preparing the bid submission for the R360 million tender.
Cartwright is alleged to have played a role in drafting bid evaluation committee (BEC) minutes and submitting documents to the bid adjudication committee (BAC).
Investigators also allege that members of the BEC – including nine police officers among the accused – failed to identify or raise concerns during the evaluation process.
Senior procurement officer Tumisho Nehemiah Maleka is accused of not properly scrutinising the submission before recommending it to the BAC for approval.
Further allegations involve Matlala’s alleged girlfriend, Brigadier Rachel Matjeng, who is accused of helping implement the contract by facilitating purchase orders.
Matjeng, who works in Saps’ forensic services division, is alleged to have received three payments of R300 000 in bribes between January and March 2025.
The authorities also claim that funds were laundered through financial movements involving Matlala, Medicare24 Tshwane District, and Luxo Africa Brand Investments.