The Special Investigating Unit (SIU) has found that three co-ordinated syndicates are at the centre of looting more than R2bn meant for health-care services at Tembisa Hospital.
This emerged on Monday morning when the SIU released its interim report on alleged large-scale corruption at the embattled hospital.
Presenting the findings, SIU interim head advocate Andy Mothibi said the investigation was being carried out in close co-operation with the office of the Gauteng premier Panyaza Lesufi.
“The SIU is probing allegations related to Tembisa Hospital and has to date identified three major syndicates that have misappropriated R2bn meant for health care at Tembisa Hospital. An analysis of 2,207 procurement bundles has revealed serious maladministration and procurement fraud,” said Mothibi.
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.
Her analysis revealed 63% of purchase orders worth between R400,000 and R500,000 issued between April and July 2021 were linked to Tembisa Hospital, an unusually high proportion compared with other large provincial hospitals.
Mothibi said the SIU probe now involves 207 service providers which traded with the hospital through 4,501 purchase orders (POs).
Each PO is linked to a purported three-quote procurement process involving supposed competitors. The total value of matters under investigation is R2,043,293,404.10.
— Andy Mothibi, SIU interim head advocate
“Each PO is linked to a purported three-quote procurement process involving supposed competitors. The total value of matters under investigation is R2,043,293,404.10,” he said.
He stressed that the numbers continued to rise as new companies were uncovered during investigations.
The SIU has identified three major criminal networks behind the looting:
- Maumela syndicate: Linked to businessman Hangwani Morgan Maumela. The SIU is reviewing 1,728 bundles worth R816.5m, of which 924 have already revealed significant irregularities. At least 41 suppliers or service providers are tied to Maumela, including three companies connected to Vusimuzi Matlala, which were awarded contracts worth R13.5m.
- Mazibuko syndicate: Linked to Rudolph Mazibuko. Investigators have reviewed 651 bundles worth R283.5m, with completed analyses uncovering assets worth R42.6m, including multiple properties in Gauteng and the Western Cape.
- Syndicate X: The identity of its leader has not yet been made public. The SIU is assessing 1,237 procurement bundles worth R596.4m, with analyses already revealing procurement irregularities and secondary conduit accounts used for money-laundering. Assets tied to this syndicate are estimated at R150m.
Officials implicated
The SIU said evidence showed corrupt payments totalling R122.2m were made to officials and employees of the Gauteng health department and Tembisa Hospital.
“At least 15 current and former officials have been identified in activities including corruption, money-laundering, collusion and bid rigging. These range from entry-level clerks to senior management and the number is expected to grow as the probe continues,” said Mothibi.
The investigation found service providers used fraudulent documentation under a deliberately manipulated “three-quote” system. Orders were consistently split into smaller amounts under R500,000 to bypass competitive bidding processes, a violation of the department’s procurement policies.
Numerous invoices further showed signs of collusion, with suppliers generating separate invoices for near identical amounts on the same day or within days of one another, effectively disguising irregular payments.
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.
TimesLIVE has reached out to the implicated individuals. This story will be updated with their comments when received.
TimesLIVE
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.