Cat Matlala revealed quite a lot during his testimony at the madlanga commission, he shed more light on how he secured a R5 million loan from businessman Steven Motsumi.

The details emerged as Matlala addressed questions regarding the nature and extent of his business and personal relationships with several high-profile individuals and commercial entities.

The Circumstances Behind the R5 Million Loan

Responding to inquiries regarding his commercial dealings, Matlala confirmed that he had engaged in a financial transaction with Steven Motsumi. According to Matlala, Motsumi’s company lent and advanced an amount of R5 million to one of Matlala’s entities, to be exact “Medicare”. The indicated loan occurred toward the end of 2024.

However after being pressed by commissioner Mbuyiseli Russel if the loan was awarded prior to the Medicare contract - which was awarded earlier in June 2024—Matlala clarified that the loan was extended prior to the contract award. He emphasized that the R5 million advance was not intended for the Medicare contract itself, but was secured for another business entity, and the arrangement was formalised through a written agreement.

Relationship Between Matlala and Motsumi

A central focus of the questioning was how the transaction came to fruition and whether a personal or prior commercial relationship existed between the two businessmen.

Matlala stated that he approached Motsumi directly via a phone call to request financial assistance. When asked why he selected Motsumi specifically for a loan of that magnitude, Matlala explained that he knew Motsumi as a fellow businessman through the late taxi industry leader, Jonathan Msibi. Once Motsumi and he frequently met at his house.

Details you might have missed - Connections Within the Taxi and Security Sectors

During his testimony Cat Matala highlighted the overlapping networks within the security and taxi industries in South Africa. Motsumi, who also operates a security company, was a close friend of the late Jonathan Msibi — a prominent taxi business owner who operated a fleet of over 200 taxis.

Matlala’s company, CAT VIP Protection, previously provided close protection services to Msibi. Matlala noted that it is standard practice in the taxi industry for large fleet owners to require private security and VIP protection services. And his relationship with Motsumi was initially established during his visit to Msibi’s house where he and several business associates met.

During his testimony Matlala promised to disclose the agreement records, along with corresponding bank transaction records to verify the exact dates. Furthermore he stated that the loan has been successfully paid.