Pretoria: Minister Dean Macpherson has announced that the Department of Public Works and Infrastructure (DPWI) has terminated the lease agreement with Medicare 24 Tshwane District, linked to the suspected criminal mastermind, Vusimuzi 'Cat' Matlala. This action concerns a hospital facility located in Pretoria West.
According to South African Government News Agency, the lease agreement was terminated on Friday, 09 January 2026, following allegations presented in the Parliamentary Ad hoc Committee and a report by a South African media company. The report detailed how Medicare 24 Tshwane District, reportedly owned by Matlala and where he was once listed as a director, allegedly circumvented standard procurement processes to secure the lease.
Minister Macpherson stated that after becoming aware of the allegations regarding the lease, he requested an internal investigation. The investigation revealed that the lease agreement with Medicare 24 Tshwane District, initiated in December 2023, could not legally take effect because the hospital facility had not been declared surplus to the requirements of the South African Police Service (SAPS). The SAPS remains the designated user of the facility under the Government Immovable Asset Management Act, 2007.
Departmental records show that SAPS needs the hospital facility for service delivery. The formal declaration of the hospital facility as surplus is essential for any lease to be legally valid.
In a statement, the department conveyed that the lease termination was necessary to ensure legal compliance and adherence to governance frameworks. Minister Macpherson emphasized his commitment to ensuring public assets are utilized for the public good, stating that the termination was issued to prevent the misuse of public funds.
Minister Macpherson also mentioned that the department would investigate to hold accountable any officials involved in authorizing the lease. He pledged to collaborate with law enforcement agencies to provide information related to possible criminal activities, ensuring that responsible parties face legal consequences. The Minister reaffirmed efforts to eliminate corruption and misuse within the Department of Public Works and Infrastructure to benefit the South African people.
In December 2025, the Department of Correctional Services reported that Matlala had been relocated from Kgosi Mampuru II Correctional Centre (C-Max) to the super maximum eBongweni Correctional Facility in Kokstad. Matlala is allegedly associated with syndicates responsible for embezzling over R2 billion intended for healthcare in Gauteng, the attempted murder of an ex-lover, and is believed to have influenced key members within law enforcement agencies.
