In testimony addressing his various corporate and commercial relationships, businessman Cat Matlala detailed the financial arrangements surrounding his company, Medicare 24/7. And how he secured a R15 million funding agreement businessman Suleman Karim to finance the entity’s operations

Central to his evidence was a R15 million funding agreement secured from fellow businessman Suleman Karim to finance the entity’s operations. The details were presented as Matlala responded to inquiries regarding his dealings with business figures across the security and healthcare sectors as well his payment of R150,000 to Mogotsi after his home was raided?

The Circumstances of the R15 Million Advance

Matlala testified that he personally approached Suleman Karim to request funding for Medicare 24/7 around July or August 2022. According to Cat Matlala, the financial advance was extended by a company belonging to Karim, identified as Tamise.

When questioned about the formalisation of the R15 million loan, Matlala clarified the nature of the transaction: Matlala clarified that the transaction was concluded on the basis of an oral/verbal agreement and while an unsigned document existed, no formal written contract was executed at the time the funds were transferred.

Matlala indicated that the repayment structure required him to pay Karim 10% of the disbursements received from the South African Police Service (SAPS) contract awarded to Medicare 24/7. Matlala noted that verifying the precise outstanding balance or historical payouts would require referencing the bank statements of the Medicare account used to service the debt.

When asked why Karim would advance a substantial sum without written security, Matlala explained that he presented his contract and Service Level Agreement (SLA) to Karim, demonstrating the overall value of the project and the potential returns.

Intersecting Networks and Business Background

Matlala stated that his acquaintance with Karim originated within the security sector, where both men operate. Karim, who resides in Sandton, ran a security enterprise and frequently visited the late taxi industry leader Jonathan Msibi. Those Matlala met him around 2020 or 2021 at Msibi’s house and over time, through shared interest in the security sector and routine led them closer.

In the same inquiry, Matlala disclosed his another loan agreement, he discussed more in this topic why Cat Matlala received a R5 million loan from businessman Steven Motsumi this informal loan was secured prior to the formal award of commercial tenders.

This R15 million funding arrangement is tied to broader scrutiny surrounding the Medicare 24/7 SAPS contract. During the proceedings, Matlala repeatedly cited his constitutional right against self-incrimination regarding the specific operational flow of funds, noting that the contract remains subject to active financial investigations and pending court proceedings that he could not incriminate himself .

Matlala noted that Mike van Wyk, who served as the CEO of Medicare 24/7 while Matlala acted as board chairman, is currently a state witness in the pending criminal matter. Matlala declined to elaborate beyond the basic facts of the funding structure, citing the ongoing legal processes.

Now we wait to see if the financial transactions following the SAPS contract award, including the transfers made from Medicare accounts to third-party funders, remain part of the formal record under review by investigative authorities.