Business Report

Back to square one as Cat Matlala walks away from plea deal

Brandon Nel|Published
Matlala appeared before magistrate Ignatius du Preez in the Pretoria Specialised Commercial Crimes court, where his counsel confirmed he would not accept the sentence the court had recommended.

Matlala appeared before magistrate Ignatius du Preez in the Pretoria Specialised Commercial Crimes court, where his counsel confirmed he would not accept the sentence the court had recommended.

Image: ITUMELENG ENGLISH

Vusimuzi "Cat" Matlala rejected a 12-year prison sentence and walked away from his plea deal with the state on Monday, sending the R228m police tender corruption case back to square one.

Matlala appeared before magistrate Ignatius du Preez in the Pretoria Specialised Commercial Crimes court, where his counsel confirmed he would not accept the sentence the court had recommended.

"I've been informed by counsel on your behalf, in respect of yourself, accused two and three, that it is your choice to withdraw from the plea and sentence agreement as you decline to accept the court's recommended sentence," Du Preez said.

"The plea and sentence agreement to be regarded as null and void."

Matlala was accused one in the matter, with his companies Medicare24 Tshwane District and Luxo Africa Brand Investments listed as accused two and three.

Du Preez postponed the matter to September 11 for the prosecution and defence to determine the way forward.

"The matter against you, as well as accused two and three, is then postponed until September 11 2026," he said.

"You will remain in custody."

Matlala pleaded guilty on June 25 to seven counts of fraud, corruption and money laundering linked to a police health tender awarded to Medicare24 Tshwane District.

Under a section 105A agreement negotiated with the National Prosecuting Authority's Investigating Directorate Against Corruption (Idac), he would have served an effective eight years, made up of 15 years' imprisonment with seven years suspended.

The deal also required him to turn state witness against senior police officers implicated in the tender scandal.

Du Preez rejected the agreed sentence on July 1, finding it too lenient for the seriousness of the offences, and proposed an effective 12 years instead.

His proposal comprised 15 years for fraud with seven suspended, and 10 years each for corruption and money laundering, of which eight would run concurrently.

The magistrate found Matlala had committed the offences out of greed and said his cooperation with the state was motivated by self-preservation rather than remorse.

"I view the accused's willingness to assist the authorities as a bargaining tool aimed at securing a more lenient sentence," Du Preez said at the time.

The collapse of the deal meant Matlala was entitled to withdraw his guilty plea and the state would have to prove its case against him from scratch before a different magistrate.

NPA spokesperson Kaizer Kganyago previously said that if the agreement collapsed, Idac would not be able to use the contents of Matlala's affidavit and would rely only on what its own investigations had revealed.

The tender, advertised at about R360m, was awarded to Matlala's company for about R228m in June 2024 and cancelled in May 2025 after an internal audit flagged irregularities, by which point about R50m had been paid out.

Matlala remained in custody at the C-Max section of the Kgosi Mampuru II correctional centre and faced a separate trial on 25 charges, including 11 counts of attempted murder.

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