SIU reveals staggering scale of Tembisa Hospital’s devastating R2-billion fraud network

The interim report on the Investigation into the Gauteng Department of Health, Tembisa Hospital, as declared by Proclamation No 136 of 2023 (Government Notice No. 48217 of 1 September 2023), released by SIU head Andy Mothibi, has exposed how colluding officials and service providers exploited and circumvented procurement controls, with luxurious assets linked to corrupt individuals. 

The investigation follows the assassination of whistleblower Babita Deokaran and highlights urgent calls for systemic reform, stronger protections for whistleblowers, and stringent accountability measures within the Gauteng Department of Health.

Read more: Remembering Babita Deokaran: A call to justice and integrity in Gauteng’s health sector

“We can reveal today, through the SIU investigation, that evidence has revealed a number of maladministration, corruption and other public procurement irregularities. This indeed would be described as devastating plunder of the public funds; the investigation has uncovered, to date, three coordinated syndicates responsible for the loss of over 2-billion.”

These were the words of Special Investigating Unit (SIU) head Mothibi on Monday, 29 September 2025, as he released the agency’s interim report into serious allegations of corruption, fraud and maladministration linked to supply chain management processes at Tembisa Hospital. The investigation was authorised by President Cyril Ramaphosa in 2023, following the high-profile assassination of whistleblower Babita Deokaran in August 2021. Deokaran, a senior official in the Gauteng Department of Health, had courageously exposed irregular payments and corruption involving approximately R850-million at the hospital.

At the briefing, Mothibi was joined by Health Minister Aaron Motsoaledi, Gauteng Premier Panyaza Lesufi and Gauteng Health MEC Nomantu Nkomo-Ralehoko.

Mothibi said that the investigation began in 2022 following a referral from the Office of the Premier. Since then, as the investigation progressed, the amount involved had grown significantly, now reaching around R2-billion.  

“This staggering sum of money intended for the provincial provision of healthcare at Tembisa Hospital to take care of the most vulnerable was instead ruthlessly syphoned off through a complex web of fraud and corruption, representing an egregious betrayal of the public trust,” said  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. 

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.

Major syndicates uncovered

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.

Beyond these primary groups, the investigation has revealed additional smaller syndicates, labeled Syndicate A through F. These groups involve a combined payment total exceeding R164-million. 

Mothibi summed up the breadth of the criminal activity: “This is not isolated corruption; it is an expansive network of collusion, and dismantling these syndicates is critical to restoring integrity to our public health system.”

Officials implicated 

The SIU’s investigation has uncovered that at least 15 current and former officials within the Gauteng Department of Health and Tembisa Hospital were deeply involved in corrupt activities, including money laundering, collusion and bid rigging. These individuals are collectively linked to corrupt payments exceeding R122-million. 

“The officials implicated are mostly lower-level employees who manipulated procurement processes to enrich themselves and service providers,” said Mothibi. Despite their lower ranks, these employees wielded enough influence to bypass internal controls and facilitate large-scale fraud. To date, 116 disciplinary referrals have been prepared to address maladministration and the irregular appointment of service providers at the hospital.

How they got away with it 

The fraudulent scheme uncovered at Tembisa Hospital was meticulously designed to circumvent the mandated three-quote procurement system, a core control meant to ensure transparency and fairness. 

“The syndicates deliberately split orders into smaller amounts under R500,000, a clear tactic to avoid the thresholds that trigger competitive tendering processes,” said Mothibi.

Collusion between corrupt officials and service providers was widespread, underpinned by fabricated deliveries and forged documentation. 

“We found numerous invoices and delivery notes that were outright fakes; payments were processed without any goods or services actually reaching the hospital,” Mothibi revealed. 

Under proper procedures, procurement involves critical safeguards: purchase request forms must be completed and authorised, vendors must be vetted through the Central Supplier Database, and comprehensive bid documents are required to comply with regulatory standards. However, the SIU’s investigation exposed systemic failure on multiple fronts:

• Suppliers were frequently appointed without any record of their registration on the official Central Supplier Database.
• There was no evidence of fair rotation among service providers.
• Extensive document forgery was rampant, involving falsified tax clearance certificates, invalid Black Economic Empowerment affidavits, and fabricated company registrations.
• Records from the hospital’s transit office revealed glaring inconsistencies; many deliveries noted in paperwork were never physically received — a scenario the SIU calls “phantom deliveries”.

Mothibi emphasised the magnitude of the fraud: “None of the transactions resulted in goods being delivered to Tembisa Hospital. All the money flowed through a network of front companies and beneficiaries, leaving the hospital with no value for money whatsoever. It is all smoke and mirrors.”

Further deepening the corruption, the SIU uncovered direct connections between winning bidders and their so-called unsuccessful competitors. These relationships were maintained through electronic money transfers, shared company directorships, and familial ties, all designed to create a false appearance of competitive bidding. 

“We traced over R1.1-million flowing from syndicate-controlled companies to losing bidders who were merely pretending to compete, undermining the entire procurement process,” said Mothibi.

Referrals, legal action and calls for systemic reform

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.” 

On the civil front, the SIU is preparing litigation to recover stolen money and freeze illicit assets, which include luxury homes, expensive vehicles, and other high-value items acquired through corrupt means.

The SIU’s report exposes a “comprehensive disregard for duty” by hospital officials and members of the Gauteng Department of Health, with accounting officers failing to exercise even basic oversight. This negligence, or in some cases complicity, provided fertile ground for the massive looting of public funds. 

Mothibi urged systemic reform, stating: “We must appoint officials of proven integrity, subjected to rigorous vetting and lifestyle audits that extend to family members to identify illicit enrichment. Junior staff need to be empowered and protected to blow the whistle anonymously without fear of retaliation. Only through transparent practices and decisive consequence management can we restore public trust and prevent the recurrence of such corruption.” DM