Procurement head Molefe Fani defends SAPS contract awarded to Matlala

SAPS head of supply chain management Molefe Fani on Thursday said there was nothing material to stop the awarding of the R360 million health risk management contract to attempted murder accused tenderpreneur Vusimuzi “Cat” Matlala’s company, Medicare24 Tshwane District.

“We were worried about the timeframe of the contract. We were asking why the contract is not done in five years,” Fani said.

“We did come to a conclusion as the bid adjudication committee (BAC) that circumstances in SAPS do change, and a longer term would not unnecessarily be required.

“Other than that, there was nothing material to stop the contract based on information at our disposal at the time,” he said.

Fani was giving evidence at the parliamentary inquiry in connection with the health risk management contract awarded to Matlala’s Medicare24 Tshwane District company.

In his earlier evidence led by evidence leader, Advocate Lorato Zikalala, Fani took the inquiry on the steps followed to procure goods and services in the SAPS, as well as the composition and role played by the BAC and the Bid Evaluation Committee (BEC).

According to Fani, the tender was advertised on January 31, 2024, followed by a briefing of service providers on February 8, 2024, and the bid application closed on February 19, 2024.

A total of 22 bids were received, and the BEC prepared a report recommending the appointment of the Medicare24 Contract Tshwane District on April 29, 2024.

The inquiry heard that National Police Commissioner Fannie Masemola was contacted by the Investigating Directorate Against Corruption (IDAC) while the tender was being adjudicated around May 2024, warning that there was a company linked to Matlala that was bidding for the contract.

IDAC had informed Masemola that Matlala’s company did not have a tax clearance certificate, had been blacklisted, and was involved in the Tembisa Hospital R2 billion looting spree.

Masemola had spoken about the matter to the then acting divisional commissioner for supply chain management, Major General Hankins, who assured him that “there was nothing untoward with the evaluation process”.

Fani, who chairs the BAC, said he did not know of any concerns raised by IDAC, and none of the committee members made declarations with the contract.

“It was unknown that this concern had been raised with the national commissioner.”

Fani also said the BEC automatically disqualified 10 of the bidders after they did not submit mandatory documents, leaving 12 for further evaluation.

“In their report, it would appear the BEC applied their mind and made certain all relevant documents and requirements of bid documents had been completed and in the report recommended suppliers be carried to the next phase of evaluation,” he said.

Fani added that the next phase of evaluation looked at whether bidders did not claim to have functionality on paper by going to the facilities listed in the bid documents to ensure that they are catered to by the supplier.

This process led to seven bidders being forwarded to the BAC.

Fani said the BAC did not discuss things contained in the report, which did not require clarification other than what was provided in the BEC report.

“My role as chair of the committee was to allow each member to indicate their decision with the submission. All members indicated they were okay with submission at their disposal.”

He added that the BEC report “appeared to be complete with regard to information that was compiled and submitted to the BAC”.

The award to Matlala’s company was made on June 14, and the contract was signed on June 18, 2024, by him by virtue of delegated powers.

However, Fani said after reports surfaced about Medicare24, suspended Minister Senzo Mchunu in December 2024 asked for a briefing and subsequently instructed an audit of the contract.

Fani told the inquiry he became aware of Matlala when reports surfaced that he won the SAPS contract.

“At that time, I did not know Cat Matlala at all.”

Fani also confirmed that a preliminary report dated January 2025 was read to him by the chief audit executive, but he never received a hard copy.

Zikalala said there was now a final audit report dated April 2025.

“The report was advanced to me a day or two ago. Prior to that, I never got a copy of the report,” he added.

Zikalala is now leading evidence on the final audit report.

mayibongwe.maqhina@inl.co.za