Magistrate Ignatius du Preez stated that Matlala’s cooperation was being used as a bargaining tool rather than demonstrating genuine remorse. The court proposed a 12-year prison sentence instead. Matlala and his defence team rejected this recommendation and withdrew from the agreement, effectively reinstating him as suspect number one in the case.
Matlala is accused of corruption, fraud, and money laundering linked to the allegedly irregular award of a 228-million-rand ($22 million) wellness tender to his company, Medicare24, for the South African Police Service (SAPS). Under the collapsed deal, Matlala had pleaded guilty to these charges in exchange for a reduced sentence and the right to become a state witness against 12 co-accused, including suspended National Police Commissioner Fannie Masemola, who denies all charges against him.
Prosecutors face a significant setback as a spokesperson for the NPA, Kaizer Kganyago, confirmed that the state can no longer use evidence from Matlala’s affidavit or the plea agreement in court. This removes a anticipated source of testimony regarding alleged collusion between Medicare24 directors and senior police officials who manipulated tender processes.
Despite the withdrawal, prosecutors maintain they have a “strong and winnable case” and will continue building their evidence independently. The 14 accused, including two corporate entities, face charges stemming from the Medicare24 Tshwane District contract. The case is expected to return to the Pretoria Regional Court in September, where Matlala is scheduled to rejoin his co-accused.
A leaked draft affidavit prepared by Matlala for the plea deal has also come to light, containing allegations of corrupt arrangements with senior figures. In the document, Matlala details his relationship with former deputy national police commissioner Shadrack Sibiya, alleging he provided 20 impalas to Sibiya in exchange for assistance securing the medical contract. Matlala also alleges that former deputy public works minister Bernice Swarts promised him government buildings to position his company for National Health Insurance contracts. Swarts has denied these claims, stating she never met Matlala and did not involve herself in administrative matters during her tenure.
The Democratic Alliance, a junior partner in the governing coalition, had previously criticized the original eight-year plea arrangement as a “betrayal of accountability.” The collapse of the deal complicates South Africa’s broader anti-corruption campaign, which aims to expose alleged penetration of the police service by criminal networks. Matlala remains in custody, and the matter is expected to be transferred to the High Court eventually.
