The Madlanga Commission has heard startling evidence of how a company linked to Tsakane Baloyi-Matlala, the wife of alleged crime boss Vusimuzi “Cat” Matlala, secured a multi-million-rand tender from the City of Ekurhuleni despite numerous red flags .
Tender Awarded Amid Multiple Irregularities
In July 2023, the Ekurhuleni Municipality invited bids from accredited skills development providers to implement professional qualification programmes . The contract was awarded to Buena Vista Learning Academy, a company controlled by Baloyi-Matlala .
Evidence leader Advocate Matthew Chaskalson detailed several glaring discrepancies regarding the company’s eligibility :
Just days before submitting its bid, the company was operating under the name Mokoko Grill, described as a local shisanyama (catering) business . The company’s registered address was the same as Baloyi-Matlala’s residential address .
Two previous directors had resigned, and Baloyi-Matlala became a director on 26 June 2023—one week after the bid invitation was advertised and less than a month before the closing date . The company name was changed from Mokoko Grill to Buena Vista Learning Academy on 11 July 2023, after the bid was invited and less than two weeks before the deadline .
The industry classification for Buena Vista Learning Academy stated that its core business was construction, not training .
No Training Accreditations
Chaskalson noted that Buena Vista had no training accreditations of its own . To qualify for the bid, the company submitted five accreditation letters awarded to other companies and signed partnership agreements with CTC College and Leda Cleaning and Security .
“The bid had to be based on partnership, because Buena Vista, being a shisanyama company until recently, was in a completely different industry and had no training accreditations of its own,” said Chaskalson .
Massive Discrepancy Between Bid Amount and Payments
Perhaps most alarming was the discrepancy between the contracted amount and the final payout . While the original tender bid price was R66,500, documents show that between 23 July 2024 and 5 September 2025, the company was paid R3,484,987—nearly 60 times the original bid value .
The payments came from Sector Education and Training Authority (Seta) grants the municipality had access to .
CSD Registration and VAT Issues
According to the Central Supplier Database, the company was registered on 20 July 2023—just four days before submitting its bid application . It obtained its BEE certificate four days before submission, and its bank account was opened on 17 July 2023 .
The company was not VAT registered, yet claimed an annual turnover of R35 million in the previous financial year in its bid application . However, the CSD registration stated the total annual turnover was R10 million or less .
“So, there seems to be a fraud of some sort taking place here. Either it’s a VAT fraud, or this turnover figure is a fictitious figure,” commented Chaskalson. “Either way, there is a fraud, either on the city or on the receiver” .
Gxasheka’s Testimony
Suspended Ekurhuleni Head of Human Resources Linda Gxasheka told the commission she was not involved in the bid evaluation or adjudication process . However, she acknowledged that the deal raised serious concerns .
“From the deductions that I made, I agree with you, chair,” she said .
Chaskalson put it directly to Gxasheka: “What we do know is that Ms Baloyi and Buena Vista Learning Academy have, in this application, perpetrated a fraud on the city and have taken almost R3.5 million out of the city as a result of that fraud. Would you agree with that?” .
Gxasheka told the commission she had attempted to halt payments to companies failing to provide satisfactory work, including that of Matlala’s partner, but was unable to provide verifiable evidence showing she intervened . The commission heard that she allegedly approved purchase orders for Matlala’s partner’s company until July last year .
The commission continues its investigation into systemic failures and overlooked red flags in municipal procurement processes .
