PRETORIA – A lease agreement between the Department of Public Works and Infrastructure and a medical company linked to Vusimuzi “Cat” Matlala has been terminated today with immediate effect.
Minister Dean McPherson confirmed on Friday 9 January that the hospital building in Pretoria West was leased to Medicare24, but that serious allegations surfaced regarding the manner in which the lease was awarded.
Investigation reveals unlawful lease
He said that he requested an internal investigation which found that the lease, which was entered into in December 2023, could not lawfully come into operation. The hospital facility was never declared surplus by the South African Police Service, which remains the designated user of the property.
Allegations surfaced during a parliamentary ad hoc committee about Matlala’s links with Medicare24. Some media reports indicated that he reportedly owned Medicare24 where he was listed as a director. The company allegedly bypassed standard procurement processes to obtain the lease.
According to McPherson’s statement, the police remains the designated user of the facility in terms of the Government Immovable Asset Management Act, 2007.
“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,” McPherson said.
“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,” the minister said.
“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. We are working decisively to rid the Department of Public Works and Infrastructure of corruption and abuse, and to ensure that it delivers meaningfully for the South African people.”
Matlala facing serious charges
Matlala is currently incarcerated at the super maximum eBongweni Correctional Facility in Kokstad after being accused of attempted murder on his ex-partner, Tebogo Thobejane, in October 2023.
It is alleged that Matlala has pocketed millions of rands through state contracts for healthcare services in Gauteng.
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