Public Works and Infrastructure Minister Dean Macpherson has terminated the department’s lease agreement with Medicare 24 Tshwane District, which is linked to businessman Vusimuzi “Cat” Matlala.
The minister says the termination follows among others serious allegations that the company bypassed correct procurement processes to be awarded the tender. regarding the way the lease was awarded.
Matlala, who is currently on trial on charges of attempted murder, was previously awarded the R360 million tender to provide healthcare services to members of the South African Police Service (SAPS).
The contract was however cancelled by the National Police Commissioner, General Fannie Masemola.
“An investigation found that the lease could not lawfully come into operation, as the hospital facility was never declared surplus by the South African Police Service, which remains the designated user of the property,” said Macpherson.
Furthermore, the Minister said the department acted to protect state assets and will launch an internal investigation to hold officials who were involved in authorising the lease accountable.
Macpherson says Matlala’s links to the company were made during the Parliamentary Ad hoc Committee and an investigation revealed that the company, which listed Matlala as a director, allegedly bypassed standard procurement processes to obtain the lease.
The minister said the investigation also found out that the hospital facility was not declared surplus to the requirements of the SAPS.
“As soon as I learnt of the serious allegations raised, I requested a thorough investigation by the department, which found that the property had not been declared surplus by SAPS and that the lease agreement could therefore not be implemented.
In line with my commitment to ensure that public assets are used for the public good, I instructed that a termination of the lease be issued to prevent any wastage of public funds,” explained the minister.
