SIU Uncovers R2 Billion Tembisa Hospital Looting: Three Syndicates, 100+ Officials Implicated

SIU Uncovers R2 Billion Looted from Tembisa Hospital in Massive Corruption Scandal

The Special Investigating Unit (SIU) has revealed a shocking corruption scandal at Tembisa Hospital in South Africa, where three syndicates allegedly siphoned off over R2 billion intended for patient care. The SIU's interim report, released on Monday, 29 September 2025, describes the looting as a “devastating plunder of the public purse,” leaving vulnerable communities without essential health services.

Details of the Corruption

The investigation, triggered by the 2021 murder of whistleblower Babita Deokaran, has exposed a complex web of fraud, money laundering, and manipulated procurement processes. These allowed insiders and outsiders to enrich themselves at the expense of taxpayers. Losses could potentially reach R3 billion, prompting calls for swift prosecutions, asset recoveries, and reforms to protect honest workers within Gauteng's health system. The briefing was led by SIU head Advocate Andy Mothibi, Health Minister Dr Aaron Motsoaledi, Gauteng Premier Panyaza Lesufi, and Health MEC Nomantu Nkomo-Ralehoko.

Lower-level officials are believed to have caused the most damage through manipulated tenders. The report comes amid growing outrage over the slow pace of justice for Deokaran, whose initial report flagged R850 million in suspicious deals. Authorities have already frozen millions in luxury assets, suspended staff, and referred cases for criminal charges as the investigation deepens.

The Scale of the Looting: R2 Billion Gone

The SIU's interim report details systemic theft at Tembisa Hospital, a key facility in Ekurhuleni. Investigators analyzed 2,207 procurement bundles, finding irregularities in deals worth R2.04 billion involving 207 service providers and 4,501 purchase orders. Each order was linked to a fake three-quote process designed to avoid proper tenders, with values kept under R500,000 to evade scrutiny. The true loss could reach R3 billion as ongoing investigations uncover more hidden layers.

The money, intended for medical supplies, equipment, and patient care, vanished into private pockets. The SIU emphasized that none of the goods in these shady deals ever reached the hospital. Expenditure on supplies increased from R315 million in 2018/2019 to almost R1 billion in 2021/2023, far exceeding patient numbers or needs. After the scandal broke in late 2022, spending dropped by 73% the following year.

Three Major Syndicates at the Heart of the Heist

The SIU has identified three main syndicates orchestrating the fraud, each linked to key figures. These syndicates reaped hundreds of millions through rigged contracts. The Maumela Syndicate, tied to Hangwani Morgan Maumela, a businessman, is at the top of the list. Investigators reviewed 1,728 bundles worth R816.5 million, linking 41 suppliers to Maumela. Assets valued at around R520 million include luxury properties and vehicles. The Asset Forfeiture Unit (AFU) has already preserved R326 million of these assets.

The Mazibuko Syndicate is linked to Rudolph Mazibuko. The SIU examined 651 bundles valued at R283.5 million, uncovering assets worth R42.6 million. The AFU froze R47 million in assets linked to this syndicate. Syndicate X, whose leader remains unnamed publicly, involves 1,237 bundles worth R596.4 million. Analyses of 646 bundles revealed money laundering, with tied assets at R150 million. Smaller linked groups, labeled Syndicates A to F, added another R164 million in illicit payments.

Over 111 Officials Implicated

The investigation has implicated at least 111 current and former Gauteng Department of Health (GDOH) and Tembisa Hospital officials in corruption. Corrupt payments to them total R122.2 million, with more expected. These officials range from clerks to managers. To date, 116 disciplinary referrals against 13 officials have been prepared, with 108 handed to the GDOH. The department has suspended several officials. Referrals also go to Health Minister Motsoaledi for oversight.

How the Scam Worked: Fake Quotes, No Deliveries, and Blind Oversight

The syndicates split large orders into smaller ones under R500,000 to avoid tenders, using fake three-quote systems with bogus documents. Suppliers submitted invoices for the same items on the same days, and officials rubber-stamped them without checks. A proper process starts with a purchase request and fair vendor selections, but at Tembisa, suppliers skipped the Central Supplier Database (CSD). Goods receipt notes were faked, and many items never arrived.

Oversight failed at every level, with the former CEO signing off on non-compliant deals. No one questioned the spike in POs or overpriced items.

Referrals, Recoveries, and the Push for Justice

The SIU has referred 25 matters to the South African Health Products Regulatory Authority (SAHPRA) for breaches of medicines laws. Four corruption cases worth R42.2 million went to the National Prosecuting Authority (NPA). Civil suits are coming to recover losses, freeze assets, and forfeit them to the state. The AFU has already seized over R370 million in properties and vehicles.

Disciplinary steps target the 111-plus officials, with the SIU urging lifestyle audits, vetting, and anonymous reporting. The unit is teaming up with the Hawks, FIC, SAPS, and SARS to trace funds.

Eye-Opening Comparisons

A comparative look shows Tembisa’s spending jumps weren’t matched at nearby hospitals, even during Covid. Patient numbers stayed steady or dipped, but costs soared—then plummeted after the 2022 exposé.

From Deokaran’s Alert to Full Probe: A Timeline of Exposure

The saga started with Babita Deokaran’s August 2021 report flagging R850 million in suspicious POs. Gunned down weeks later, her death shocked the nation. Six hitmen were sentenced in 2023, but the mastermind remains free, with new 2025 evidence pointing to Matlala and others. The Gauteng Premier’s Office seconded SIU staff in September 2022, leading to Proclamation 136 in 2023 for a full probe. The interim report stems from this.

Calls for Reform: Protecting Whistleblowers and Fixing the System

The SIU calls this a wake-up call on oversight failures, urging integrity in hires, family audits, and safe reporting. Groups like the Public Servants Association (PSA) demand urgent fixes to procurement flaws and better whistleblower protection, echoing Deokaran’s legacy. The Democratic Alliance (DA) pushes for prosecutions.

Gauteng Health has responded by suspending officials and committing to act on referrals. Premier Lesufi vows to root out graft, while Minister Motsoaledi praises the SIU tie-up.

Honouring Heroes and Hunting the Guilty

The SIU thanks whistleblowers like Deokaran and its investigators, pledging protection. As probes wrap, South Africans hope for recovered funds, jailed crooks, and a cleaner health system.