Senzo Mchunu speaks after 12 cops arrested over R360m Medicare contract

Police Minister Senzo Mchunu, who has been placed on special leave, believes the arrest of 12 police officers allegedly linked to the awarding of the R360 million Medicare 24 Tshwane District contract to tender kingpin Vusimuzi “Cat” Matlala is only the tip of the iceberg.

Speaking to the Mail & Guardian on Wednesday, Mchunu said neither KwaZulu-Natal Police Commissioner Lieutenant General Nhlanhla Mkhwanazi’s July 6 bombshell briefing nor evidence before the Madlanga commission could be credited for the arrests.

“This thing emanates from an article I read on 20 March 2024 about the allegations of tender fraud involving Matlala’s company, Medicare 24. I then asked National Commissioner General Fanie Masemola about this because I was afraid it would create problems. But he [Masemola] said he was told by the supply chain that everything was above board.” 

Mchunu said that four days after raising the issue with Masemola, he convened a closed meeting with senior South African Police Service (SAPS) officials from the supply chain management and internal audit divisions.

“The meeting was led by Masemola and we received a briefing from the supply chain who said there was nothing wrong with the contract. But an internal audit, on the other hand, said there were things that were flagged during the awarding [of the contract] and that they were investigating.” 

Mchunu told the M&G it was at that point that he had instructed that no funds be released until the investigation had been concluded. The contract was eventually cancelled after the investigation raised red flags and found that it had been awarded illegally.

The 12 senior police officers, along with a Medicare 24 director, were arrested on Tuesday in connection with the R360m police health contract awarded to Matlala’s company. 

The arrests were carried out by the Independent Directorate Against Corruption (Idac), which falls under the National Prosecuting Authority. Matlala, who is widely regarded as a feared underworld figure, is believed to have bribed senior police officers in order to secure the lucrative contract.

It has also emerged that Matlala allegedly cultivated influence among senior police generals through money, gifts and other favours, helping him secure other lucrative SAPS contracts too. 

Much of the explosive information has surfaced through testimony before the Madlanga commission, which is investigating allegations of corruption in the criminal justice system, political interference and criminality.

The commission was triggered after Mkhwanazi’s now-infamous July 6 briefing in which he alleged underworld interference in police affairs after the disbandment of the political killings task team (PKTT), a unit investigating politically linked murders.

But Mchunu insists it was his intervention, together with Idac’s work, that ultimately stopped Matlala’s company in its tracks.

“I was correct in directing the national commissioner to review and cancel the contract. The investigation and subsequent cancellation process started way back in 2024. The 12 senior generals are not the only ones who will be arrested. There will be more,” he said.

Mchunu became the first senior politician to be placed on special leave after Mkhwanazi alleged that the disbandment of the PKTT was intended to protect the so-called Big Five cartel, allegedly led by Matlala.

Brigadier Athlenda Mathe conceded that the Matlala saga had exposed serious weaknesses in the SAPS’s internal controls.

“This is a loophole we have identified. It is an eye-opener and we need to do better on our checks and balances,” she said. “Somewhere, somehow we dropped the ball. We can’t have someone with a huge criminal background like Matlala’s being given such a big contract.”