Tembisa Hospital Heist Syndicates Unmasked

SIU interim report has exposed unprecedented corruption perpetrated by syndicates that have infiltrated the hospital’s procurement systems

The Special Investigating Unit (SIU) recently released an interim report on looting and corruption at Tembisa Hospital, which paints a grim picture of betrayal, dereliction of duty, and underscores a profound erosion of public trust. Prompted by a report compiled by late whistleblower Babita Deokaran, the investigation into procurement irregularities at the health facility has unmasked a massive trail of systematic looting to the value of R2-billion, casting a deep and insidious shadow of boundless corruption within the South African health system.

Instead of adhering to competitive bidding processes, service providers were irregularly appointed using falsified documents and a manipulated three-quote system. Purchase orders were deliberately split into smaller values - often just under R500 000 - to circumvent stricter tender regulations.  

Ultimately, no goods were delivered to Tembisa Hospital for most of these transactions, with the reported R2-billion simply vanishing into thin air from the health facility’s accounts. It is alleged that the funds were illicitly channelled into the pockets of corrupt beneficiaries through front companies and conduits.

Three syndicates, supposedly linked to Hangwani Morgan Maumela, Rudolph Mazibuko and an unnamed individual aptly referred to as ‘X’, are said to be the centre of this massive cash heist, according to the interim report. Maumela is reportedly President Cyril Ramaphosa’s nephew from a previous marriage.

The ‘Maumela Syndicate’ is associated with R816.5-million in irregular bundles, while the ‘Mazibuko Syndicate’ is linked to R596.4-million in illicit procurement deals with the hospital. The ‘X Syndicate’ is associated with R596.4 million in irregular procurement deals. All three syndicates respectively boast lucrative assets, which the SIU also managed to trace.

“We can reveal today, through the SIU investigation, that evidence has revealed several maldistributions and other public procurement irregularities,” SIU head, Advocate Andy Mothibi, declared at the press briefing on Monday. 

“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," he added, while further referring to the looting as all “smokes and mirrors”.

Intriguingly, the scandal extends beyond external service providers. It filters deep into the operational fabric of Tembisa Hospital and the Gauteng Department of Health (GDOH), with evidence pointing to R122.2-million in corrupt payments directly linked to at least 15 current and former officials.

These individuals range from entry-level clerks to top management officials, and they all allegedly abused their positions through the rigging of tender bids, collusion, and money laundering to facilitate the irregular appointments of companies they are linked.

Health Minister, Dr Aaron Motsoaledi, expressed his disappointment at how individuals he terms as ‘thugs’ have effortlessly infiltrated the government system. He also subtly referred to the government system as being too conducive for thugs to thrive and lead lavish lives using public funds.

“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. 

A staggering 116 disciplinary referrals against 13 officials - with 108 of them already delivered to the GDOH - have already been prepared by the SIU to date, while an additional four criminal matters of payments made to officials to the value of R42.2-million have been referred to the National Prosecuting Authority (NPA) for further action.

The SIU's civil litigation team is preparing to further launch proceedings to recover all stolen funds and assets, ensuring that those responsible are held accountable and ill-got gains are forfeited to the state.

Branching off his Deokaran assassination reference, Motsoaledi further highlighted how legitimate employees were working in fear amongst derelict colleagues, whom they now work with in fear.

“I know what I am going to say, many of you here might criticise me, but I am going to say it anyway. When things like this happen, you start appreciating why the Chinese execute people, to remove them from society. You start appreciating it.

“I am not saying we can do it, we are a different country, but you start appreciating why they go to that extent. Because they don’t want to live in hiding and let the thugs run amok.”

The SIU's findings do indeed resonate with Deokaran’s warnings, whose initial report in 2021 flagged suspicious spending at Tembisa Hospital. She particularly highlighted the proliferation of large purchase orders just below the tender threshold.

While patient admission remained stable, a dramatic surge in medical supply costs from R315-million in the 2018/19 financial year to nearly R1-billion by 2021/2023 exposed great incongruence - prompting Deokaran to sound the alarm. Also surprising is the fact that the hospital’s expenditure contrarily plummeted by around 73% in the 2023/2024 financial year following the commencement of the SIU report.

With the full investigation anticipated to conclude by November 2027, the SIU, in collaboration with various law enforcement agencies, has pledged to relentlessly pursue justice and recover every cent looted from the public purse.