The National Prosecuting Authority says it has a solid case despite alleged Pretoria tender tycoon and criminal suspect Vusimuzi “Cat” Matlala withdrawal from his highly anticipated plea and sentence agreement with the state.
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It was Vusimuzi "Cat" Matlala himself who proposed the plea deal he walked away from on Monday, the National Prosecuting Authority said.
And though the deal collapsed, the NPA said it would not negatively impact the case against the 17 accused as there was sufficient evidence to sustain the charges against all of them.
The prosecuting authority said the genesis of the agreement was Matlala voluntarily approaching the Investigating Directorate Against Corruption (Idac) to propose a plea deal, which led to discussions between his attorneys and the state.
Matlala withdrew from the plea and sentence agreement in the Pretoria specialised commercial crimes court after rejecting the effective 12-year sentence magistrate Ignatius du Preez 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 appeared in the dock in a tan jacket, white shirt and dark tie, wearing black-framed glasses.
Matlala was accused one in the matter, with his companies Medicare24 Tshwane District and Luxo Africa Brand Investments as accused two and three.
Du Preez postponed the matter to September 11 and said Matlala would remain in custody.
The court had given Matlala and the state until Monday to decide whether to accept the recommended sentence, after Du Preez rejected the original agreement on July 1.
The NPA said Matlala would rejoin his co-accused when the matter returned to court.
Legal expert Ulrich Roux told IOL the collapse of the deal meant Matlala would lose his separated status and return to the main trial as an ordinary accused, stripped of his role as state witness.
"He was removed from that matter under the proviso that he would plead guilty and that he would be sentenced on his own, together with the two companies that he represents," Roux said.
"But now that he's rejected the plea deal, he's going to be added to the other accused, and the matter will now run its normal course."
He said the state will then finalise its investigation.
"It will provide a copy of the docket to all the accused, and then the accused will be free to then plead not guilty or guilty," he said.
"He can still plead guilty in terms of section 112, which means that the sentencing is left up to the magistrate to determine what sentence he will receive.
"So the matter resumes as normal now. He's accused number one in the main matter together with the other accused, and he will no longer be regarded as a state witness."
National director of public prosecutions Advocate Andy Mothibi said the collapse of the deal did not reflect on the strength of the state's case.
"We assure the members of the public that a plea and sentence agreement is a legally recognised and legally viable strategic mechanism of preventing a protracted trial by concluding same with a cooperating accused person against whom the state has a formidable case and to get evidence that was not readily available," Mothibi said.
"It is certainly not an indication of the state's lack of confidence in its case. The Idac is now focusing on ensuring that the pending trial proceeds without hindrance."
The agreement would have turned Matlala into a state witness, requiring him to testify against police officers and other accused implicated in the alleged corruption, bid manipulation and tender rigging that underpinned the contract.
The suspension of part of his sentence was conditional on him giving full and frank testimony in future trials, remaining in the country until after 2030 and giving up his firearm rights.
His companies would each have paid a R1m fine, suspended for five years.
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, resulting in his separation from his 16 co-accused.
Under the section 105A agreement, he would have served an effective eight years, made up of 15 years' imprisonment with seven suspended.
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 viewed his cooperation with the state as 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 accused's willingness to cooperate with the authorities followed only after his arrest, and upon realising the authorities were onto him."
Du Preez also said the duty to expose corruption did not rest with accused persons.
"The duty to investigate and prosecute those who corrupt the institution of state rests upon the SA Police Service and the NPA, and not upon the accused," he said.
The tender, advertised at about R360m, was awarded to Matlala's company for about R228m in June 2024.
It was cancelled in May 2025 after an internal audit flagged irregularities, by which point about R50m had been paid out.
In his plea, Matlala admitted paying more than R300,000 to Brigadier Rachel Matjeng, a police forensic services official with whom he was in a romantic relationship, and who referred police members to his company for medical screening.
Matjeng was dismissed from the police on June 30 after a disciplinary hearing found her guilty of receiving gratification, money laundering and dishonesty.
Matlala's co-accused include a dozen senior police officers linked to the committee that awarded the tender and suspended national police commissioner General Fannie Masemola, who faces charges under the Public Finance Management Act.
The NPA also noted that Idac head advocate Andrea Johnson had been scheduled to appear before the Madlanga Commission but could not due to ill health.
Mothibi called on all to allow the commission to do its work unhindered.
Matlala was expected to appear before the commission, which is investigating criminal infiltration of the justice system, on Wednesday.
He 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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