SAPS Procurement Head Molefe Fani Admits R360 Million Tender to Vusimuzi ‘Cat’ Matlala Should Have Been Disqualified
Pretoria – National police divisional commissioner and head of procurement Molefe Fani has admitted that a R360 million tender awarded to businessman Vusimuzi “Cat” Matlala’s company should have been thrown out due to several red flags. Fani made these concessions while testifying before Parliament’s ad hoc committee probing police corruption on Thursday, 21 November 2025. He also confirmed that no criminal background check was done on Matlala, despite his string of convictions and ongoing charges.
The tender, for medical services to the South African Police Service, was later scrapped after an internal audit uncovered issues. This case highlights ongoing concerns about how public money is handled in government deals, especially in a time when trust in law enforcement is already low due to past scandals.
Fani wrapped up his evidence under tough questioning from MPs and evidence leaders, who pressed him on why he missed warning signs when Matlala’s firm, Medicare24, made the shortlist. His admissions come amid wider scrutiny of SAPS procurement, where big contracts have sometimes gone to firms with questionable records, raising fears of waste and favouritism.
Background to the Controversial R360 Million Tender
The tender was put out in 2023 for health risk management services, meant to provide medical support to police officers and their families. Medicare24, owned by Matlala, won the three-year deal worth R360 million. Matlala, a well-known figure in business circles, has a history of landing government work but also faces legal troubles, including charges for fraud and money laundering in other matters.
From the start, questions swirled around how Medicare24 got the nod. An internal SAPS audit later flagged problems, leading to the contract’s cancellation in 2024. The audit found the firm did not meet all rules, including issues with documents and compliance. This sparked the ad hoc committee’s probe, set up to dig into corruption claims in police ranks, including procurement lapses that cost taxpayers dearly.
Matlala has denied wrongdoing, saying his firm earned the tender fairly. But Fani’s testimony painted a picture of missed steps that let it slip through.
Fani’s Admissions During the Hearing
Under grilling from MPs, Fani owned up to several slip-ups. He said Medicare24 should have been disqualified because bidders tampered with documents. “One of the tender requirements that we have is that the submitted schedules should not be changed or altered in any form. If they have been altered, this should have been a disqualification,” Fani told the committee.
He also admitted the shortening of the tender advertising period was irregular, which cut the time for other firms to bid. Fani promised action against officials involved in that decision, saying it went against fair process rules.
On background checks, Fani confirmed none were done on Matlala. This is a big gap, as Matlala has convictions for crimes like assault and faces pending cases for serious offences. MPs pushed Fani on why this was overlooked, especially for a deal handling sensitive health services for cops.
Fani defended himself, saying no probe will find him at fault. He claimed the process followed rules at the time, but conceded flaws like the lack of checks and altered papers should have raised alarms. “No investigation will find me culpable,” he insisted, while admitting the award was not perfect.
Evidence leaders and MPs, including those from opposition parties, did not let up. They asked if Fani saw red flags during shortlisting, like reports of Matlala’s unethical conduct in past state deals. An audit note said: “It is alleged that the Bidder committed an unethical conduct in respect of the procurement process in another organs of state.” Fani said he relied on team advice but agreed more scrutiny was needed.
Irregularities and Red Flags in the Tender Process
The committee heard how Medicare24 fell short on key rules. For one, the firm failed to sign a franchise agreement, a must for compliance. Fani conceded: “Matlala’s company wasn’t fully compliant with tender requirements.”
Other issues included a rushed bid process and questions about how Matlala’s firm scored high despite flags. The tender specs called for clean records and proper papers, but alterations slipped through. This points to weak checks in SAPS supply chain, where Fani heads up.
Matlala’s past added fuel. He has convictions and faces charges elsewhere, yet no vetting happened. This raises worries about how SAPS picks partners for big money deals, especially ones touching officer wellbeing.
The contract got pulled after the audit, but not before some work started. Taxpayers footed the bill for the mess, sparking calls for better oversight to stop such wastes.
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