Lieutenant General Molefe Fani, Divisional Commissioner for Supply Chain Management at the South African Police Service (SAPS), appearing before the parliamentary Ad Hoc Committee – defended the decision to award a R360-million tender to controversial businessman Vusimuzi “Cat” Matlala.
The Committee, established in October, is investigating serious allegations of infiltration and corruption within SAPS. It also centers on SAPS tenders allegedly manipulated to benefit criminal syndicates purportedly protected by senior political and police officials, with Matlala at the forefront.
In June 2024, SAPS awarded a major security services tender to Medicare24, a company linked to Matlala.
Twenty-two bidders submitted tenders, but Medicare24 was selected after evaluation and adjudication committees endorsed it as compliant with procurement requirements.
However, shortly after the award, investigative reports raised concerns that the company lacked a valid operating license, key documents related to third-party supplier arrangements were missing, and allegations surfaced that Matlala exerted undue influence over procurement officials.
Matlala’s name had been linked previously to a notorious criminal syndicate alleged to collude with senior police officials and political figures – including suspended Police Minister Senzo Mchunu.
This syndicate was accused of sabotaging police units such as the Political Killings Task Team (PKTT) and profiting from multiple police tenders.
During his testimony, Lt Gen Fani maintained that the award process complied with regulatory standards.
“An official in my absence assured the National Commissioner that there was nothing wrong with the evaluation process. The adjudication committee which i chair, did not declare any concerns during their declarations,” he said.
Advocate Lerato Zikalala challenged Fani on irregularities found post-award, including alleged tampering with the pricing schedule and incomplete franchise agreements.
Fani acknowledged that some documents were missing but argued these were not mandatory at the time of submission.
Regarding criminal allegations, including those tied to the Tembisa Corruption case—where funds meant for Covid-19 relief were reportedly looted – Fani emphasised the procedural separation.
“We do not disqualify bidders based on allegations unrelated to the tender evaluation itself. Such matters are referred to Legal Services for further action,” he explained.
He recalled that after media exposés in December 2024, the then Police Minister ordered a full audit of the contract. The audit confirmed irregularities, leading to the tender’s eventual cancellation.
On questions about due diligence failures, Fani conceded that evaluation committees relied heavily on the Central Supplier Database (CSD) and Treasury records, which had not flagged Matlala’s companies as restricted or problematic.
“If the committee had been fully aware of all these issues, Legal Services would have guided us on disqualification,” he said.
The ad hoc committee’s investigation into police infiltration and corruption continues, with further testimonies expected.
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