Tembisa
SIU Uncovers R2 Billion Looting at Tembisa Hospital: Three Syndicates Exposed in Interim Report as Corruption Probe Heads Toward 2027 Conclusion
South Africa’s Special Investigating Unit (SIU) has laid bare a shocking web of corruption at Tembisa Hospital, revealing how three coordinated syndicates plundered over R2 billion meant for patient care. In an interim report released on Monday, 29 September 2025, SIU head Advocate Andy Mothibi detailed a complex scheme of fraud, money laundering, and procurement scams that left the hospital without essential supplies while enriching a network of officials and shady service providers. This betrayal of public trust has sparked outrage, with calls for swift prosecutions and reforms to plug gaps in the country’s health system. As the probe continues, Mothibi warned that the full scale of the theft could climb even higher, with early estimates already ballooning from R850 million flagged by slain whistleblower Babita Deokaran to as much as R3 billion now under scrutiny.
The briefing, held in Johannesburg, saw Mothibi joined by Health Minister Dr Aaron Motsoaledi, his deputy Dr Joe Phaahla, Gauteng Premier Panyaza Lesufi, and provincial Health MEC Nomantu Nkomo-Ralehoko. Their presence highlights the government’s push for transparency amid growing pressure to root out graft in public hospitals. Tembisa, a key tertiary facility in Ekurhuleni serving thousands of vulnerable patients, has long battled understaffing and resource shortages—problems made worse by this looting. With the investigation set to wrap up by November 2027, the SIU vows to chase every stolen rand and hold all involved accountable, sending a strong message that corruption in healthcare will not be tolerated.
Devastating Scale of the Plunder: From R850 Million Alert to R2 Billion Exposed
The SIU’s interim report paints a picture of outright theft on a massive scale, with R2.043 billion siphoned through 4,501 purchase orders involving 207 service providers. This figure dwarfs the R850 million in suspicious payments first spotted by Babita Deokaran in August 2021, just weeks before her assassination outside her Johannesburg home. Deokaran, a senior Gauteng health official, had analysed four months of data and raised the alarm on excessive spending at Tembisa compared to larger hospitals. Her death, linked by many to her whistleblowing, remains unsolved, with the mastermind still at large despite six hitmen being jailed in 2023.
As the probe deepened, losses escalated. The SIU now estimates the total could reach R3 billion as more connections emerge, including smaller syndicates pocketing millions through collusion and fronting. Expenditure on medical supplies skyrocketed from R315 million in 2018/2019 to nearly R1 billion in 2021/2022, far outpacing patient numbers and without matching rises at nearby facilities. After the SIU’s involvement and Deokaran’s report went public in December 2022, spending plunged 73% to R255 million in 2023/2024, proving the syndicates’ grip had been broken—but not before immense damage was done.
No goods or services reached the hospital in many cases; it was all “smoke and mirrors,” with funds flowing to conduits and then to luxury assets. This left patients without basics like bandages and equipment, worsening chronic issues like long waits and poor care. The SIU’s analysis of 2,207 procurement bundles showed deliberate order splitting to dodge tenders, fake quotes, and overpricing—some items cost far more than market rates under national contracts.
The Three Main Syndicates: Leaders, Tactics, and Lavish Assets Seized
At the heart of the scam are three major syndicates, each with a web of suppliers and corrupt officials. The Maumela Syndicate, linked to Hangwani Morgan Maumela, tops the list with R816.56 million under review across 1,728 bundles. Maumela’s empire includes 41 suppliers, three of which tie to controversial businessman Vusimuzi “Cat” Matlala, who pocketed R13.54 million. Matlala, arrested in May 2025 for attempted murder, has been flagged in Deokaran’s initial report for suspicious tenders to his firms like Black AK Trading & Suppliers.
Assets traced to Maumela total R520 million, including a R75 million Bantry Bay mansion, properties in Sandton, Hartbeespoort, Zimbali Estate, and Cape Town’s Twin Towers. His garage boasts Lamborghinis (Urus, Huracan STO, Aventador SVJ and Ultimate Coupe), a Bentley Continental GT V8, an Isuzu D-Max, a trailer, and a Regency 250 LE boat. The SIU helped the NPA’s Asset Forfeiture Unit freeze these, with more actions pending at the Special Tribunal.
The Mazibuko Syndicate, headed by Rudolph Mazibuko, siphoned R283.5 million via 651 bundles. Assets worth R42.65 million include homes in the Western Cape and Gauteng. Syndicate X, still under deep scrutiny, involves R596.42 million across 1,237 bundles, with R150 million in linked assets like secondary bank accounts for laundering.
Smaller groups add to the tally: Syndicate A (R9.6 million), B (R76.46 million), C (R8.64 million), D (R37.54 million), E (R3.4 million), and F (R28.94 million). Links between winners and “losing” bidders—through family ties, shared directors, and R1.11 million in kickbacks—show the whole process was rigged.
Implicated Officials: Lower-Level Staff Caused Most Damage, Referrals Pile Up
The SIU has pinpointed 15 current and former Gauteng Department of Health (GDOH) and Tembisa officials in corruption, taking R122.23 million in bribes. These range from clerks to managers who twisted procurement for personal gain. Lower-level staff inflicted the most harm by faking documents and ignoring rules, a pattern seen in other probes like Home Affairs.
To date, 116 disciplinary referrals target 13 officials, with 108 handed to GDOH for maladministration and irregular appointments. Seven more are ready, and one held for civil suits. The SIU notes a “comprehensive disregard for duty,” with CEOs approving non-compliant bids, no oversight on high PO volumes, and breaches in segregation of duties. Transit office flaws allowed fake deliveries, with goods received vouchers logged before checks.
This echoes issues in medico-legal claims and refugee centres, where SIU interim reports with Health Minister Motsoaledi led to reforms. Here, 25 matters went to SAHPRA for Medicines Act breaches, and four (worth R42.23 million) to the NPA for prosecution.
Modus Operandi: Fake Quotes, Split Orders, and No Deliveries
The scam bypassed standard procurement: No fair vendor rotation from the Central Supplier Database, fake tax clearances, B-BBEE affidavits, and SBD forms. Orders were split under R500,000 to skip tenders, violating policy. Invoices showed collusion, with similar amounts issued close together.
Goods receipt was a sham—direct deliveries signed off without checks, SRM entries faked. Security logs and VA7 docs were missing or inconsistent. Unsuccessful bidders were in on it, getting payoffs from winners. Overpricing was rife, with items far above transversal contract rates.
The SIU stresses none of these deals benefited the hospital—funds vanished into assets, leaving no value for taxpayers.
Path to Justice: Recoveries, Freezes, and Systemic Fixes
The SIU’s civil team is gearing up to sue for recoveries, freezing pensions of resigned officials and forfeiting assets to the state. Monies will return to the health fiscus. Collaboration with NPA, Hawks (DPCI), FIC, SAPS, and SARS continues to follow the trail.
For reform, the report calls for integrity vetting, lifestyle audits (including families), anonymous hotlines, and consequence management. Junior staff need protection from coercion, and oversight must tighten to prevent such rot.
From Deokaran’s Alert to SIU Proclamation: Timeline of the Probe
Deokaran’s August 2021 report flagged 63% of high-value POs at Tembisa. Her murder prompted a Gauteng Premier’s Office secondment to SIU in September 2022, leading to a December 2022 public report. Proclamation 136 of 2023 expanded the scope from January 2020 to September 2023, allowing pre/post inquiries.
The interim release reflects the probe’s complexity, with full completion eyed for November 2027. Mothibi praised whistleblowers like Deokaran and vowed protection for them and investigators.
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