Public Works Pulls Plug On ‘Cat’ Matlala-Linked Pretoria Hospital Deal

The Department of Public Works & Infrastructure has terminated a controversial lease agreement with Medicare 24 Tshwane District, following explosive allegations surrounding how the contract was awarded.

Public Works & Infrastructure Minister Dean Macpherson confirmed on Friday that the lease for a hospital facility in Pretoria West had been cancelled with immediate effect after an internal investigation uncovered serious legal flaws.

The deal has been under intense scrutiny due to links to controversial businessman Vusimuzi “Cat” Matlala, who was reportedly the company’s owner and previously listed as a director.

Lease Axed After Probe Finds SAPS Still Controls Property

According to the department, investigators found that the property in question was never formally declared surplus by the South African Police Service (SAPS), which remains the officially designated user of the site.

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This meant the lease should never have been implemented.

The allegations first surfaced through testimony presented to a Parliamentary Ad hoc Committee, followed by an investigation by a South African media company. The reports detailed how Medicare 24 Tshwane District allegedly bypassed standard procurement procedures to secure the lease.

Macpherson said the findings left the department with no option but to act swiftly.

Public Works Minister ‘We Can Never Tolerate Abuse of State Resources’

“As soon as I learnt of the serious allegations raised, I requested a thorough investigation by the department of Public Works & Infrastructure, which found that the property had not been declared surplus by Saps and that the lease agreement could therefore not be implemented,” Macpherson said.

He stressed that decisive action was needed to safeguard public assets. “I instructed that a termination of the lease be issued to prevent any wastage of public funds. As a department, we can never tolerate the abuse of state resources,” he added.

Officials Face Scrutiny as Criminal Probe Looms

The department has now committed to a deeper internal investigation to identify how the lease was approved and who authorised it.

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“We will now embark on an extensive internal investigation to ensure that any officials who played a role in authorising this lease are held accountable. We will also work closely with law-enforcement agencies and hand over any information relating to possible criminality to ensure that those responsible face the full might of the law,” Macpherson said.

He concluded by reaffirming the department’s anti-corruption stance.

“We are working decisively to rid the Department of Public Works & Infrastructure of corruption and abuse, and to ensure that it delivers meaningfully for the South African people,” Macpherson said.

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