SAPS CFO flags R360m Medicare24 tender linked to ‘Cat’ Matlala
South African Police Service (SAPS) Lieutenant General Puleng Dimpane, Chief Financial Officer, revealed that serious flags were raised internally about the irregularities in a R360-million Medicare24 security tender awarded to notorious murder suspect Vusimuzi Cat Matlala.
Dimpane, testifying before the committee established in October to examine claims made by KwaZulu-Natal Police Commissioner Lieutenant General Nhlanhla Mkhwanazi, revealed serious procurement flaws in the SAPS.
In July, Mkhwanazi accused senior police officers and politicians of obstructing police operations and protecting drug cartels implicated in political assassinations.
Crucially, the Committee heard that the contract was awarded in June 2024 under the stewardship of Lieutenant General Molefe Fani, head of SAPS Supply Chain Management, placing direct responsibility for the contentious tender squarely on his shoulders.
Medicare24, linked to Matlala, won the contract against 21 other bidders, but soon after, both media reports and an internal SAPS audit uncovered alarming red flags.
The company lacked a valid operating license and failed to disclose critical supplier arrangements. These revelations called into question the integrity of the tender evaluation and awarding process managed by Lt Gen Fani.
Dimpane testified that she became aware of the tender’s irregularities only upon returning from leave in January 2025, when internal auditors – prompted by external media scrutiny—alerted her.
“Upon my return, I was briefed by internal auditors who were conducting investigations triggered by media reports,” she said.
While SAPS policy places operational management of the Bid Adjudication Committee (BAC) under Lt Gen Fani, he has publicly defended the tender’s legitimacy.
Yet, the contract has been identified as a significant contributor to SAPS’ irregular expenditure, accounting for R48 million of the R360 million disclosed for the 2024/25 financial year. Payments were immediately halted following the discovery of the irregularities.
Dimpane raised concerns about a persistent culture of weak consequence management in SAPS, warning that without tangible disciplinary action for procurement breaches – including deliberate fraud – such irregularities will continue unchecked.
“This is a major concern. Unless SAPS applies real consequences for breaches, including deliberate procurement fraud, irregular expenditure will persist,” she stated.
The scandal has dealt a heavy blow to SAPS’ credibility, prompting demands for a forensic audit to identify those responsible and facilitate the recovery of misappropriated funds.
The audit process is reportedly complete, with the department awaiting its findings to guide further action.
Last week, Lt Gen Fani appeared before the Ad Hoc Committee and reiterated that Medicare24 was compliant with the Treasury’s Central Supplier Database at the time of award.
When directly asked by ANC MP Xola Nqola if he was confident that no investigation would implicate him, Fani responded firmly: “No report will find such.”
Dimpane’s explosive testimony exposes critical weaknesses in SAPS’ procurement controls and financial governance, signaling an urgent need for reform to restore public trust.
As the Ad Hoc Committee continues to probe corruption risks and irregular expenditure linked to criminal syndicates, holding influential individuals, such as Lt Gen Fani, accountable remains both essential and overdue.
thabo.makwakwa@inl.co.za
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