Matlala says tycoon Carrim gave him R15m loan without security

Corruption accused Vusimusi “Cat” Matlala received R15m from North West tycoon Suliman Carrim as a loan without a signed agreement or any collateral, the Madlanga commission heard on Monday.

Matlala testified that after his company, Medicare24, was awarded the controversial R228m medical tender by the South African Police Service, he received R15m from Carrim as a loan to Medicare24 to render services.

Matlala is appearing in court facing corruption charges regarding the tender.

The loaned amount, mentioned by Matlala, contradicts Carrim’s version. The North West businessperson told the commission when he appeared before it in March that the loan was R10m. He gave the same figure in an affidavit before the high court in Johannesburg.

“I confirm that I know Suliman Carrim, and I previously approached Mr Carrim to request funding for my company, Medicare,” Matlala told the commission.

“It is R15m; the agreement was made orally. I do, however, have an agreement, but it is an unsigned agreement.”

Carrim’s company bank records before the commission showed he sent about R2m in addition to the R10m, suggesting the investment was more than R10m.

Evidence leader Mahlape Sello asked Matlala how he was able to secure a R15m loan from Carrim, who is not his friend, without a signed agreement and, presumably, without security.

“I think I am quite jealous of the friendships you have; you get R5m [from security company boss Steve Motsumi] without security.

“I am interested in the nature of the relationship that you had with Mr Carrim, in that you could persuade him for a loan of R15m in the absence of a written agreement and, I assume, without security or guarantee for the repayment of that loan,” she said.

Matlala said all he did was provide Carrim with the copy of his company’s tender with SAPS and confirm with a gentlemen’s handshake.

“I did not have to persuade him; I just showed him my contract and just discussed how much the contract is worth and how much he can make out of it. It was not a matter of persuading him; either he was doing it or not. I did not have to persuade him,” Matlala said.

Sello said the benefit of having a written agreement would have informed the commission of the terms of the loan and whether the interest rate applicable was in line with usual loan agreements.

I did not have to persuade him; I just showed him my contract and just discussed how much the contract is worth and how much he can make out of it. It was not a matter of persuading him; either he was doing it or not. I did not have to persuade him.

Carrim told the commission he advanced the R10m to Matlala on terms that he would be paid an additional amount of R10m over a three-year contract period. The repayment would be made at an equivalent of 10% of all payments received from SAPS until the amount of R20m was paid.

When the contract was cancelled and Matlala was arrested in May 2025, Carrim said he was owed R8.25m.

Before Carrim stopped his evidence, citing ill health, he was supposed to seek an explanation from his employees about payments to Matlala in addition to the R10m.

Evidence also showed Carrim paid controversial businessman Hangwani Morgan Maumela out of repayments he received from Matlala for the tender, saying Matlala owed Maumela money. Matlala did not refer to the matter in his testimony.

Matlala has invoked the right not to give self-incriminating evidence and has identified his dealings with Carrim as a matter that could lead to self-incrimination on the basis that the money flowing from Medicare24 to Matlala is a subject of a criminal investigation.

“I am aware that there are ongoing investigations on the Medicare SAPS contract, particularly a financial investigation on the flow of funds from the said contract, and therefore am of the view that any further comments beyond that which I have provided may lead to self-incrimination,” Matlala said.

He told the commission he met Carrim at the farm of late taxi boss Jotham “Mswazi” Msibi. Msibi was described to the commission as a “ruthless” taxi boss.

Matlala described Maumela, who is linked to the looting of Tembisa Hospital, as his friend.

“Hangwani Morgan Maumela is my friend and a person who I have previously conducted business with. At a point in time he was a director of Cat VIP Protection,” he said.

The National Prosecuting Authority (NPA) has seized property worth R326m linked to Maumela after his companies were flagged by slain state official Babita Deokaran in tender corruption.

By invoking the right not to be compelled to give self-incriminating evidence to most allegations he faces, Matlala created tension between his legal representative, advocate Annelene van den Heever, and Sello.

Commissioner Sesi Baloyi warned Van den Heever at a point in the hearing that she was acting “improper and testifying from the bar” when she interjected and argued on a question posed to Matlala.

Matlala was implicated by several witnesses in allegedly bankrolling police bosses in the tender awarded to his company, Medicare24. He declined to answer questions related to the contract.

The constitution provides that every accused person has a right to a fair trial, which includes the right not to be compelled to give self-incriminating evidence.

The Medicare24 contract has been central to the commission’s probe into allegations of criminal infiltration in law enforcement agencies.

Matlala has been accused of gifting and paying large sums of money to police deputy commissioner Lt-Gen Shadrack Sibiya and former police organised crime investigations boss Maj-Gen Richard Shibiri and of having had dealings with SAPS officer Sgt Fannie Nkosi.

Matlala also remained silent on his links to Sibiya, Shibiri and Hawks KZN Maj-Gen Lesetja Senona.

He based his refusal to answer on his challenge on the recording of an “informal interview” the police had with him when he was arrested in May 2025.

In the recording, a voice of a man identified as Matlala told officers that in one of the alleged money transactions with Sibiya, he put R200,000 in the deputy national commissioner’s private bathroom in his office.

Matlala allegedly indicated that when Sibiya’s son was getting married, he gave Sibiya R300,000.

Matlala allegedly told the officers that Sibiya “loves money a lot”, and the money he gave him also included money to buy a plot.

Matlala is challenging the legality of the recording and declined to answer questions, arguing the matters before the commission could be part of a criminal investigation and he does not want to self-incriminate.

Matlala now has to file an affidavit setting out why the questions posed to him about the top cops could lead to self-incrimination.

On Monday, he told the commission he had no relationship with suspended police minister Senzo Mchunu and denied having given any gratifications for the benefit of the minister.

“It suffices to say, I do not know minister Mchunu,” he said.

Matlala testified he gave more than R150,000 to politician Brown Mogotsi but now “hates him” because he swindled him by using Mchunu’s name and promising to help him open a case against police when his house was raided in December 2024.

Matlala said he did not know crime intelligence boss Maj-Gen Feroz Khan, though he admitted a police officer asked him if he could testify in a manner which could lead to Khan being acquitted of charges in a disciplinary hearing, as a favour directly for Matlala.

“I do not have any relationship with Maj-Gen Khan. I have never met him and have had no interactions with him,” said Matlala.

He told the commission that former minister Bheki Cele told him Mchunu wanted to replace police crime intelligence head Lt-Gen Dumisani Khumalo with Khan.

Matlala’s testimony has been postponed to next week.

Business Day