PROJECT: THE LOOTING/CORRUPTION SCANDAL AT TEMBISA HOSPITAL IN GAUTENG
- Isabel Spies
- Oct 8
- 7 min read
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Tembisa Hospital is a major public healthcare facility in Gauteng Province, serving many vulnerable people in the Ekurhuleni area.
Over recent years, allegations have emerged that large sums of money earmarked for patient care were misused
through procurement fraud, irregular contracts, and corrupt procurement processes.
A particularly prominent trigger for the investigation was the whistleblower Ms. Babita Deokaran, who held the position of Chief Director of Financial Accounting in the Gauteng Department of Health.
In August 2021, she was murdered — this is widely believed to be linked to her exposure of corruption in health procurement systems around Tembisa Hospital. As of 29 September 2025, the Special Investigating Unit (SIU) released an interim report with detailed findings about the scale and mechanics of corruption.
LISTEN TO MR. MIKE BOLHUIS' INSIGHTFUL COMMENTS IN THE FOLLOWING INTERVIEW:
SOME OF THE KEY FINDINGS ARE:
The total value under investigation:
Over R2 billion was allegedly misappropriated through irregular procurement and corrupt service providers.
Number of purchase orders and service providers:
The SIU is investigating 4,501 purchase orders involving 207 service providers.
Procurement bundles:
The SIU analysed more than 2,200 procurement bundles, uncovering widespread fraud, irregularities, and manipulations.
Syndicates identified:
Three major syndicates have been identified as well as several smaller ones.
The major ones are commonly known as:
The Maumela Syndicate – linked to Hangwani Morgan Maumela.
Jobs/contracts worth ~R800-R820 million under this syndicate.
The Mazibuko Syndicate – linked to Rudolph Mazibuko.
Contracts worth ~R280-R300 million.
Syndicate X – identity still not fully public.
Contracts worth ~R590-600 million under investigation.
Officials implicated:
So far, at least 15 current or former officials have been named, from low to mid-level, involving roles in procurement, certification, or oversight.
Payments to officials are estimated at R122 million in corrupt gains.
Assets seized/frozen:
The National Prosecuting Authority’s Asset Forfeiture Unit has already obtained preservation orders over assets linked to the corrupt syndicates, valued in the hundreds of millions.
These assets include luxury homes in affluent suburbs, multiple luxury vehicles (including Lamborghinis, Bentleys, Mercedes-Benz) and other properties.
MODUS OPERANDI:
The corruption was facilitated through extensive fraud that exploited weaknesses in the procurement system.
This included:
IRREGULAR CONTRACTS:
Syndicates used fraudulent documents, such as falsified company papers, expired tax clearance certificates, and forged Black Economic Empowerment affidavits, to secure supply contracts.
INFLATED PRICES:
Goods were purchased at exorbitant markups.
One case revealed surgical drapes being sold at a 2000% markup, and plastic buckets for nearly 5000% more than their value.
NON-MEDICAL ITEMS:
The hospital procured thousands of non-essential items, including skinny jeans and leather couches.
Many of these items were possibly never delivered.
FAKE COMPANIES:
Many payments went to "letterbox" companies that existed only on paper, with no legitimate business activity.
THREE-QUOTE MANIPULATION:
Rather than following procurement rules, officials manipulated or forged bids.
The “three-quote” or request-for-quote system was misused, sometimes with false or duplicate quotations, or with service providers “fronting” for others.
SPLITTING ORDERS:
Purchase orders were deliberately kept under the threshold (often under R500,000) by splitting up requirements so that they would evade more stringent tendering procedures.
FALSE/FORGED DOCUMENTS AND FRONT COMPANIES:
Use of false supplier registration, false invoices, fronting (companies acting as fronts for others), and serious lapses in auditing.
DISCIPLINARY AND CRIMINAL REFERRALS:
The SIU has submitted many referrals for disciplinary action within the Gauteng Health Department (GDOH); some have been referred to the National Prosecuting Authority (NPA) for potential criminal charges.
CIVIL RECOVERY:
Steps are being taken to recover looted funds through civil court, and preservation orders on assets have been obtained.
PUBLIC AND POLITICAL PRESSURE:
Media, civil society (e.g. OUTA), opposition parties and political figures have issued calls for accountability, transparency, and full implementation of the SIU’s findings.
Some are demanding suspension or removal of implicated officials.
THE ASSASSINATION OF MS. BABITA DEOKARAN:
Ms. Babita Deokaran, a senior financial official at the Gauteng Department of Health, was a crucial witness cooperating with the SIU.
In 2021, just weeks after she red-flagged R850 million in suspicious payments at Tembisa Hospital, she was assassinated outside her Johannesburg home.
FAILURE TO PROTECT:
Despite Ms. Deokaran expressing fears for her safety to her superiors, she was not provided with protection.
The masterminds behind her murder have yet to be identified.
CONVICTIONS:
In 2023, six men who acted as the hitmen pleaded guilty and were sentenced to a combined 95 years in prison.
However, the family and the SIU continue to demand the prosecution of the instigators who ordered the killing.
STOLEN EVIDENCE:
After Ms. Deokaran's murder, a phone belonging to her superior, which contained crucial WhatsApp messages about her investigation and her safety concerns, was reported stolen, hindering the probe.
IMPACTS ON HEALTHCARE AND PUBLIC TRUST:
While the investigation focuses on financial figures and mechanics, there are growing concerns about the real-world impact:
Funds intended for medicines, medical supplies, and essential services were diverted. This means that hospital operations were compromised: shortages, delays, and possibly poorer patient care.
The scandal shakes public trust in healthcare institutions and governmental oversight.
When large sums are stolen, the direct harm to society is huge; the indirect harm is also substantial: public perception, demoralisation of honest staff and reluctance to believe in reforms.
The murder of Ms. Deokaran adds a tragic dimension as whistleblowers face real danger in trying to expose corruption.
REMAINING QUESTIONS AND RISKS:
Some issues are still unresolved or evolving.
Full identity of some syndicates:
While two are relatively well-identified (Maumela and Mazibuko), a third major syndicate (Syndicate X) remains partially unnamed, possibly to avoid asset dissipation.
How far up the chain of responsibility does it go ?:
Most of the named persons are mid- or low-level; it is not yet clear how many senior management, political leadership, or oversight bodies were aware, complicit, or negligent.
Implementation of recommendations:
Whether the disciplinary actions, criminal prosecutions, asset recoveries, and systemic reforms will proceed effectively is still in question.
There is a risk of delays, legal challenges, and pushback.
CURRENT STATUS:
The scandal continues to be a major focus for investigators and the public.
R2 BILLION LOOTED:
An interim report from the SIU in September 2025 confirmed that the amount looted has escalated to over R2 billion.
ASSETS PRESERVED:
The SIU is working with the National Prosecuting Authority (NPA) to recover stolen funds and has preserved assets, including properties and vehicles, belonging to those implicated.
ACCOUNTABILITY DEMANDED:
The findings have been met with public outrage and demands for accountability from government leaders.
The Democratic Alliance has also called for a functional police and NPA to prosecute the masterminds.
WHISTLEBLOWER SAFETY:
The assassination of Ms. Deokaran has highlighted significant failures in the government's ability to protect whistleblowers, prompting calls for urgent reform.
The Tembisa Hospital corruption case is one of the most serious recent exposures of large-scale procurement fraud
in South Africa’s public health sector. The SIU’s findings suggest that over R2 billion intended for healthcare was diverted through well-organised syndicates, false procurement processes, and collusion involving public officials.
The scale, method, and audacity of the looting raise questions about oversight, governance, and accountability in public health systems. For patients and communities that rely on public hospitals, the consequences are severe —
when resources run dry, lives are affected.
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