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Tembisa Hospital managers received substantial payments from syndicates, allowing them to embezzle more than R2bn.
The syndicates behind the looting frenzy at Tembisa Hospital in Ekurhuleni paid R16m to six hospital clerks, R7.3m to an assistant nurse and R67m to their managers.
The employees enabled the syndicates to siphon off R2bn in dodgy supplier contracts.
This is according to Special Investigating Unit (SIU) head Andy Mothibi, who briefed the media on Monday on the unit’s report regarding its investigation into corruption at the hospital. He said 15 employees were involved in corruption, money laundering, collusion and bid rigging to benefit the syndicates.
Hospital managers received substantial payments from syndicates, allowing them to embezzle more than R2bn. This includes three main syndicates:
one led by tycoon Hangwani Morgan Maumela, who pocketed R816m;
another led by Richard Mazibuko, who scored more than R283m; and
a third, identified only as Syndicate X, which made R596m
Meanwhile, three companies linked to controversial tenderpreneur and attempted murder accused Vusimuzi “Cat” Matlala scored R14m in tenders from the hospital.
The report revealed that 15 former and current hospital employees, including Gauteng health department workers, were paid more than R122m.
In some of the transactions traced through personal bank accounts:
an assistant nurse was paid R7.3m by two syndicates and the money was transferred to the nurse’s family members;
one of the clerks received almost R6.4m, which was also distributed to relatives;
a senior hospital manager received R30m from the Maumela syndicate; and
a medical staff member received R750,000 in kickbacks.
Mothibi said corrupt payments linked Syndicate X to 32 accounts associated with current and former health department or Tembisa Hospital officials, totalling R56m.
He said the corrupt officials were responsible for:
identifying the need;
sourcing service providers linked to Syndicate X;
adjudicating and recommending the appointment of these service providers;
approving the appointment of the service providers;
certifying compliance with regulations;
issuing POs [purchase orders];
confirming that goods were delivered; and
allowing payments to be made to the tainted service providers.
The SIU said it had prepared 116 disciplinary referrals against officials, of which 108 relating to irregular appointments of service providers, which were delivered to the department.
Four corruption matters were referred to the National Prosecuting Authority, while 25 other matters have been sent to the South African Health Products Regulatory Authority regarding the noncompliance of service providers who were not licensed to distribute medical supplies.
Orders split to bypass tender processes
Mothibi said service providers were appointed using fraudulent documents for a flawed three-quote system.
“This [was] to bypass tender processes, keeping transaction values under R500,000. This deliberate splitting of orders violated the department’s procurement policy, which prohibits subdividing requirements to evade competitive bidding.”
Numerous invoices from suppliers indicated collusion between service providers and officials, he said. Separate invoices were generated for similar amounts on the same day or within a short timeframe.
The SIU’s findings indicate severe breaches of trust and authority in Tembisa Hospital’s operations, including fronting and syndicated activities — Andy Mothibi, SIU head
A sound procurement process typically includes a purchase request form, fair vendor selection and adherence to the central supplier database guidelines. “However, the SIU found this protocol was circumvented, allowing for further irregularities and concealment of supplier identities.
“The SIU’s findings indicate severe breaches of trust and authority in Tembisa Hospital’s operations, including fronting and syndicated activities.”
The Maumela syndicate is under investigation for 1,728 procurement bundles worth R816m — money Maumela used to buy expensive properties in different provinces.
“The SIU identified numerous secondary conduit accounts which were used to launder funds from the service providers trading with the Tembisa Hospital to the ultimate beneficiary. It would appear that Tembisa Hospital contributed to lavish lifestyles and the acquisition of phenomenal assets,” Mothibi said.
The SIU identified at least six properties with a combined value of R293m linked to Maumela. These properties include, but are not limited to, an R88.5m house in Bantry Bay in Cape Town, others in Gauteng and another in Ballito, KwaZulu-Natal.
Maumela also bought a fleet of luxury cars, including four Lamborghinis and a Bentley Continental GT V8.
The Mazibuko syndicate splashed out on multiple properties worth R283m in the Western Cape and Gauteng.
Gauteng premier Panyaza Lesufi told the briefing the investigations need to be expanded to other hospitals in the province.
“This report is damning and disturbing. It confirms our suspicions that the Tembisa Hospital probe needs to be expanded. From this report it is clear we need to broaden these investigations to hospitals in other provinces, especially those that had unexplained procurement processes in the past few years,” he said.
“There are indications that the same mode of operations is happening at other hospitals in other provinces and, therefore, we need to move with speed.”
The SIU report noted that during the height of the corruption at Tembisa Hospital, from 2018 to 2020, expenditure for medical supplies increased from R315m to R598m, while patient intake did not fluctuate significantly.
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[SRC] https://www.timeslive.co.za/news/south-africa/2025-09-30-how-clerks-enabled-tembisa-hospital-looting-frenzy/
