An interim report by the Special Investigative Unit (SIU) into corruption at Tembisa Tertiary Hospital has revealed that officials at the Gauteng Department of Health and hospital staff abdicated their duties, allowing fraudulent activities to go unabated.
Speaking at the release of the report at the hospital on Monday, Advocate Andy Mothibi from the SIU said the extent of the fraud and corruption unearthed was only possible because officials disregarded their duties.
The investigation, initially meant to probe expenditure at the hospital from January 2020 to September 2023, expanded its scope to investigate transactions from 2018 to 2024.
Over R2 billion looted
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Investigators analysed 2,207 procurement bundles, which revealed irregular, fraudulent and corrupt transactions involving three syndicates responsible for the looting of over R2 billion that was meant for the provision of healthcare services.
These syndicates have been linked to Hangwani Maumela, who has up to 41 suppliers connected to him.
Mothibi revealed that Maumela was able to siphon more than R816 million through the suppliers or service providers. Three of the syndicates under Maumela were awarded contracts worth more than R13 million, linked to three companies under Vusimuzi “Cat” Matlala, a notorious businessman currently behind bars for alleged attempted murder, conspiracy, and money laundering.
Matlala’s name has been linked to several high-profile cases and was one of the key figures named by KwaZulu-Natal police commissioner Lieutenant General Nhlanhla Mkhwanazi, for allegedly having undue influence in the South African Police Services (SAPS) and the police ministry. Mkhwanazi’s revelations in July resulted in the establishment of the Madlanga Commission of Inquiry by President Cyril Ramaphosa to investigate his claims of criminality, corruption, and police interference in the criminal justice system.
The SIU has secured a Special Tribunal order to freeze Maumela’s assets worth over R500 million, including properties in Hartbeespoort, Sandton, Ballito and Cape Town, as well as vehicles. The freeze was done to ensure money is recovered, with assets to be liquidated and returned to the fiscus.
A second major syndicate led by Rudolf Mazibuko was responsible for 651 bundles worth R283 million. Mazibuko’s involvement in the Tembisa hospital looting includes links to shell companies that bought non-medical items like children’s skinny jeans at inflated prices. The SIU has identified properties in the Western Cape and more than R96 million in assets linked to the Mazibuko syndicate, with the total value of more than R150 million in properties.
A third syndicate, referred to as ‘Syndicate X’, remains unnamed as investigations continue. The SIU also identified smaller syndicates labelled A through F, each involving multiple service providers.
Officials implicated
More than 15 current and former officials at the Gauteng Department of Health and Tembisa Hospital have been identified as having received R120 million through their involvement in the corruption schemes. This number is expected to rise as investigations continue.
The SIU has made 116 disciplinary referrals linked to officials ranging from clerk-level to management positions.
One level nine employee (public servants who earn an average annual salary of R462 972) received R30 million, while a clerk-level employee pocketed R2 million. Hospital management officials received amounts ranging from R950,000 to R22 million. An assistant nurse received R7.3 million, while other officials at various levels received between R2.2 million and R13 million.
“We will name them once they have been through the disciplinary process. We are also going to ensure that everyone in the food chain and process is identified and dealt with,” says Mothibi.
He further noted that employees at lower levels have caused significant damage not only at Tembisa Hospital but also in other departments, including Home Affairs.
How the fraud worked
The modus operandi involved procurement fraud, where service providers supplied fraudulent invoices with collusion between suppliers and officials. Invoices were often provided on the same day, purchase request protocols were circumvented, and fronting was employed through the use of existing shell companies.
Unsuccessful bidders who were part of syndicates walked away with transfers worth R1 million. The former CEO at the hospital, Dr Ashley Mthunzi, authorised appointments of non-compliant bidders, and purchase orders sent to Gauteng Health contained irregular certificates that were never questioned by provincial employees.
Mthunzi passed away in April 2024 while under investigation for not adhering to procurement processes and alleged corruption.
“When we investigate, we also look at what the weaknesses are in the system. In many instances, it is management or officials’ override, which is an intention on the part of the officials to really override the system.
“You will see that there are also enablers outside of government, which are sort of private sector companies,” explains Mothibi.
Whistle-blower Babita Deokaran identified irregularities in 2021 before her assassination.
Between 2018 and 2019, the SIU found that expenditure increased for medical supply procurement, but nothing was delivered. Following intervention by the Premier’s office who roped in the SIU to investigate the hospital following Babita’s report in 2022 to 2023, expenditure dropped by 73% from over R948 million to R225 million, despite increased patient numbers initially and later decreased patient attendance.
“There was a complete disregard for duty from officials. Accounting officials abdicated their duties. Officials turned a blind eye, allowing the rot to continue,” Mothibi says.
Calls for consequences
Health Minister Dr Aaron Motsoaledi questioned why so many officials chose Tembisa Hospital for their corrupt activities and emphasised that the syndicates would not have operated without participation from government officials.
“The same modus operandi in the killing of Babita was identified at Home Affairs. Such things make one understand why countries like China prosecute corrupt officials,” Motsoaledi says, adding that corrupt officials caught must never work for the public service again.
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The investigation, which was expected to be completed by November 2027, has been requested to conclude by 2026 despite its complexity.
The SIU has referred criminal matters to the National Prosecuting Authority and is working with the Asset Forfeiture Unit, SAPS, financial services providers, and the South African Revenue Service to ensure consequences follow.
Systemic corruption concerns
Health activist Mark Heywood says the findings represent the beginning of justice for Babita Deokaran.
“I don’t believe that senior officials in the national and provincial health departments were unaware of this. So I think that there are still people who need to be caught up in this net,” Heywood says.
He called for investigations to be extended to all hospitals in Gauteng, stating that while Tembisa may be a case study in the scale and organisation of corruption, every public hospital is vulnerable to similar schemes.
“Migrants are not the cause of our problems in the healthcare system. The cause of our problems is corruption, mismanagement and maladministration at a very senior level and austerity, financing, and under-budgeting for our health care system.”
He emphasised that the R2 billion lost to corruption translates directly to fewer nurses, less medicine, reduced administrative staff, longer queues, and deteriorating hospital conditions. All of these are problems often incorrectly blamed on migration. – Health-e News
