Madlanga Commission: Carrim may be prosecuted for money laundering

Evidence leaders at the Madlanga Commission said controversial businessman Suleiman Carrim may be referred for prosecution related to money laundering.

Carrim took the witness stand on Monday, where he testified on his relationship with alleged tender fraudsters Vusimuzi "Cat" Matlala and Hangwani Maumela.

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Carrim said in June 2024, he invested R10 million into Matlala’s Medicare24 company to assist with a tender from the South African Police Service (SAPS).

Medicare24’s SAPS tender was terminated due to credible allegations of fraud and corruption.

However, before its termination, Medicare24 had paid R2.5 million to Carrim.

Carrim then paid R750,000 of that money to a company registered to Maumela's sister.

Evidence leaders suggested Carrim was assisting Maumela in circumventing a preservation order laid on him by the South African Revenue Service (SARS).

“Now, if the contract was, in fact, procured by fraud and corruption, then the proceeds of that SAPS Medicare24 contracts are proceeds of crime and that raises an issue under Section 5 of POCCA – what it says a person commits a money laundering offence if they have reasonably to have known that certain amounts were proceeds of crime, and if they conclude a transaction which is likely to have the effect of concealing, or disguising the nature, source or location of those proceeds.

“Now, one of the many issues the commission is going to have to consider at the end of the day is whether to recommend money laundering prosecutions against either yourself, Matlala or Maumela, arising from the payments that were sent to Luthaga [Maumela’s company registered to his sister] via Tameez [Carrim’s company].”

Carrim said he never intended to commit fraud and money laundering and that he was just doing his work as a businessman.

He continues with his testimony on Tuesday.