By Lehlohonolo Lehana.
The Special Investigating Unit (SIU) Head Andy Mothibi says investigations into corruption at Tembisa Hospital uncovered three syndicates responsible for over R2 billion in losses.
Mothibi led the media briefing on progress made in its investigation into allegations of corruption and maladministration at Tembisa Hospital.
He was joined by Minister of Health Dr Aaron Motsoaledi, Gauteng Premier Panyaza Lesufi, and Gauteng MEC for Health Nomantu Nkomo-Ralehoko.
The briefing comes after the Asset Forfeiture Unit (AFU) seized assets belonging to businessman Hangwani Maumela, nephew of president Cyril Ramaphosa, who had scored at least R415 million contracts awarded by Tembisa Hospital.
“We can reveal today, through the SIU investigation, that evidence has revealed a number of maldistribution and other public procurement irregularities. This indeed will be described as a devastating plunder of the public funds, which we found in our probe. The investigation has uncovered, up to date, three coordinated syndicates responsible for the loss of over R2 billion,” said Mothibi.
“This staggering sum of money intended for the provision of healthcare at Tembisa Hospital to take care of the most vulnerable was instead ruthlessly siphoned off through a complex web of fraud and corruption representing an egregious betrayal of the public trust,” added Mothibi.
The SIU’s interim report presents a detailed examination of 2,207 procurement bundles tied to Tembisa Hospital, unveiling widespread maladministration, procurement fraud and systemic corruption. These procurements involved a staggering 207 service providers and a total of 4,501 purchase orders (POs), all intended to comply with a regulated three-quote procurement process designed to ensure fairness and transparency.
However, the investigation revealed that this process was routinely circumvented through the use of false documentation and fraudulent bid submissions.
“What was supposed to be a competitive and transparent procurement system was manipulated by colluding officials and unscrupulous service providers,” said Mothibi. Fronting practices were prevalent, where companies that did not legitimately qualify were nonetheless awarded contracts by acting as fronts for others.
Mothibi said the SIU’s work would continue and further findings would be handed over to the National Prosecuting Authority for possible criminal prosecution, while disciplinary action and civil recoveries would also follow.
The report also highlighted sophisticated money laundering operations built into the procurement system. Funds intended for essential healthcare goods and services were rerouted through false invoices and secondary conduit accounts, effectively masking the financial trail. These irregular appointments and payments were closely linked to officials within the Gauteng Department of Health and management at Tembisa Hospital.
The use of fabricated supply chain management documentation was instrumental in bypassing controls, facilitating an environment where corrupt officials enriched themselves at the expense of public health, “said Mothibi.
The investigation has uncovered three major syndicates at the heart of the Tembisa Hospital corruption scandal, each orchestrating a sophisticated network of fraud and theft that has drained public resources on an unprecedented scale.
The Maumela Syndicate is linked to Hangwani Morgan Maumela. The SIU has examined 1,728 procurement bundles valued at more than R816-million connected to this group.
“We identified a staggering 41 suppliers tied directly to Maumela, involving large sums diverted into personal enrichment,” said Mothibi.
The syndicate’s assets are estimated at about R520-million, encompassing luxury vehicles, including Lamborghinis and Bentleys, and prime real estate across several provinces. Notable properties include a R75-million estate in Bantry Bay, Cape Town, and residences in Gauteng and KwaZulu-Natal. The National Prosecuting Authority (NPA) Asset Forfeiture Unit has successfully preserved several of these assets.
Connected to Rudolph Mazibuko, this syndicate was responsible for irregularities in 651 procurement bundles worth approximately R283-million. According to the SIU report, the Mazibuko Syndicate holds assets valued at more than R42-million, including multiple properties across Gauteng and the Western Cape.
“This group exploited their position to systematically siphon funds intended for vital healthcare services,” Mothibi said.
Syndicate X remains under active investigation, linked to 1,237 procurement bundles valued at nearly R596-million. The SIU has uncovered evidence of sophisticated money laundering schemes using secondary conduit bank accounts to mask the illicit flow of funds. Assets connected to Syndicate X are estimated at about R150-million.
The Tembisa scandal came into the national spotlight after the assassination of whistle-blower Babita Deokaran in August 2021.
Deokaran, who was the chief director of financial accounting in the Gauteng health department, was shot dead shortly after dropping her child at school. It later emerged that her murder was linked to attempts to stop her exposing the fraudulent network siphoning millions from the hospital.
On September 14 2022, the office of the premier entered into a secondment agreement with the SIU to conduct a forensic probe based on Deokaran’s report dated August 4 2021.
To date, the SIU has referred 25 matters to the South African Health Products Regulatory Authority concerning breaches of the Medicines and Related Substances Act. These referrals focus on contraventions in the procurement and distribution of medical supplies connected to Tembisa Hospital. Mothibi stated: “These referrals are critical to ensure regulatory enforcement against compromised medical products, protecting public health.”
Additionally, the SIU has handed over four major corruption cases involving both officials and service providers to the National Prosecuting Authority (NPA). The corrupt payments linked to these cases total more than R42-million. Mothibi emphasised: “The NPA now holds the evidence needed to pursue criminal charges against those who facilitated the embezzlement of these public funds.”
Nkomo-Ralehoko said she since she took office, they have dealt with tender corruption and tightened controls in the supply chain systems.
“When I arrived there in October 2022, we tightened controls as the Department of Health, especially with supply chain processes, which are in line with the legislation and regulatory framework to ensure that we mitigate against corruption, irregular expenditure, and maladministration while fostering accountability,” she added.
Motsoaledi paid tribute to whistleblowers such as Deokaran, who was assassinated after raising red flags about corruption at the hospital.
The minister said other whistleblowers had also faced violence, including one government insider known as Mr T. “The people who killed Babita, and who put Mr T (another whistleblower in government) are driving Lamborghinis, the Lamborghini Urus and the other ones you could not pronounce, advocate (Mothibi). They are living a free life. Now, what type of country are we going to become that the public servants who are the real public servants are the ones that are in hiding, and the sgebenzas (thugs) are the ones driving Lamborghinis,” said Motsoaledi.
Meanwhile Democratic Alliance (DA) Spokesperson on Justice and Constitutional Development Advocate Glynnis Breytenbach said her party welcomes the SIU’s report but reiterated the need for prosecuting those behind the scandal.
“Justice hangs in the balance, and it is up to the Saps and NPA to tip the scales in favour of the rule of law. There has never been a more critical time for these institutions to start doing their jobs,” she said.
Breytenbach said it was an “atrocity” that the Saps and NPA have become synonymous with delayed investigations and bungled prosecutions.