Sars turns up the heat on ‘Cat’ Matlala over R14m tax bill - TimesLIVE
Drowning in a slew of criminal charges, alleged Big Five cartel member Vusimuzi “Cat” Matlala has also now caught the beady eye of the taxman.
The South African Revenue Service (Sars) is targeting his company, Medicare24 Tshwane District, over R14.2m in outstanding taxes.
The medical services company is at the centre of criminal charges related to a dodgy R228m contract with the South African Police Service (SAPS). It was awarded the contract in 2024 to provide health risk management services for police officers. However, the contract was abruptly cancelled following claims of procurement irregularities, fronting and collusion by the Investigating Directorate Against Corruption (Idac).
A Sars final demand issued in May gave the company 10 business days to settle the full amount.
The Sunday Times has established that the company has been unable to settle the bill and has also not entered into a payment agreement with the revenue collector.
The walls appear to be closing in on Matlala, who is fighting for his freedom in two separate criminal cases.
He appeared flustered in the Johannesburg high court this week, losing his composure after judge Cassim Moosa adjourned proceedings early and police attempted to block him and his co-accused from consulting their lawyers before being taken to the holding cells.
A frustrated Matlala shouted for his advocate, Annelene van den Heever, to “come here”, and later grabbed her arm.
He is facing 25 charges, including attempted murder, conspiracy, fraud and defeating the ends of justice, stemming from an alleged 2023 hit on actress Tebogo Thobejane.
Matlala is charged in a separate case with tender fraud and corruption linked to the SAPS contract. This case was postponed on Friday to September 25, when he is expected to appear in the Pretoria Specialised Commercial Crimes Court. At this appearance, Matlala and his two companies, Medicare24 and Luxo Africa Brand Investments, are due to be rejoined with the other accused in the case. They were initially separated due to a plea deal with the state, which ultimately collapsed.
The Sars final demand sets out several options available to Medicare24 if it is unable to pay the full amount immediately, including an application to pay the debt in instalments.
The demand does not provide a detailed breakdown of the R14.2m, referring only to the amount as the overdue balance reflected in the company’s latest Sars account statement.
The revenue collector warns that it can require a third party who owes money to Medicare24, or holds money on the company’s behalf, to pay that money directly to Sars. The measure could allow Sars to target funds due to Medicare24 from other parties if the company’s tax debt remains unpaid.
The demand also warns that Sars can pursue a civil judgment against the company and that a warrant of execution would allow the sheriff to attach and sell Medicare24’s assets. It further states that interest will continue to be levied on the outstanding amount.
The demand does not accuse Matlala or Medicare24 of fraud, corruption or any other criminal offence. Nor does it state that the outstanding tax debt is connected to any criminal investigation involving Matlala.
Sars spokesperson Siphithi Sibeko said the institution was prohibited from divulging confidential taxpayer information to the media.
Medicare24’s contract with the SAPS, initially reported at R360m before being cited at R228m, has drawn scrutiny over the circumstances under which it was awarded and the officials and businesspeople linked to it.
Among those facing charges is suspended national police commissioner Gen Fannie Masemola, who is accused of contravening the Public Finance Management Act by allegedly failing to ensure that Medicare24 was properly screened before the contract was awarded.
