The R228-million police tender corruption prosecution suffered a major setback on Monday when businessman Vusimuzi “Cat” Matlala chose to abandon his plea agreement rather than accept the longer prison term proposed by the court.
The case will now proceed to trial from the beginning, with prosecutors unable to use Matlala’s confession or cooperation against senior police officials allegedly involved in the tender fraud.
Magistrate Ignatius du Preez formally dissolved the plea and sentence agreement at the Pretoria Specialised Commercial Crimes Court after Matlala’s legal team confirmed their client would not accept the recommended 12-year sentence.
The businessman and his two companies, Medicare24 Tshwane District and Luxo Africa Brand Investments, had entered a deal with the National Prosecuting Authority’s Investigating Directorate Against Corruption in late June. That agreement would have seen Matlala serve eight years in prison after pleading guilty to seven counts involving fraud, corruption and money laundering.
In exchange, he was expected to testify against senior officers in the South African Police Service implicated in awarding the fraudulent tender.
However, Du Preez rejected that arrangement on 1 July, describing it as too lenient given the severity of the crimes. The magistrate instead proposed 12 years imprisonment, structured as 15 years for fraud with seven suspended, alongside concurrent sentences for corruption and money laundering.
During the earlier proceedings, Du Preez said Matlala had acted out of greed and questioned whether his willingness to cooperate stemmed from genuine remorse or merely self-interest.
The magistrate described the businessman’s cooperation as “a bargaining tool aimed at securing a more lenient sentence”.
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NPA spokesperson Kaizer Kganyago has confirmed that the collapse of the agreement means investigators cannot use Matlala’s affidavit. The prosecution will rely solely on evidence gathered through its own investigation.
The tender at the centre of the case was initially advertised at around R360 million. Matlala’s company secured it for approximately R228 million in June 2024. An internal audit uncovered irregularities, leading to the contract’s cancellation in May 2025. About R50 million had already been paid out by that stage.
The matter has been postponed to 11 September to allow both sides to chart the way forward. Matlala will remain in custody at Kgosi Mampuru II correctional centre’s C-Max section.
He is also facing an unrelated trial on 25 charges, including 11 counts of attempted murder, scheduled to start on 20 July.
The decision to reject the plea deal means the state must now prove its case before a different magistrate, starting the entire prosecution process again.
ALSO READ: Court rejects plea deal for businessman in R228-million police tender fraud case
