Tembisa Hospital Corruption Scandal: Billions Siphoned Off in Shocking Supply Chain Fraud

Category: South Africa News | Corruption | Health Sector

A massive corruption scandal has once again cast a dark shadow over South Africa’s public healthcare system, with Tembisa Hospital in Gauteng at the center of a multi-billion-rand fraud scheme. Allegations of maladministration, fraudulent tenders, and deep-rooted corruption have implicated senior officials, politically connected individuals, and dozens of companies.

The Special Investigating Unit (SIU) is expected to release its interim report, which could expose more details and possibly recommend criminal prosecutions for those involved.

READ: Gauteng Spends R46m on Hospital Fireproofing Contracts Linked to Mashatile’s Sons

Billions Lost Through Corrupt Tender Schemes

Investigations have uncovered how criminal syndicates allegedly manipulated Supply Chain Management (SCM) processes to loot state funds.

Key individuals implicated include:

• Stefan Govindaraju – Allegedly received R437 million through 60 front companies.
• Hangwani Maumela – Accused of siphoning R415 million via 14 companies.
• Mazibuko family – Allegedly benefited from R300 million through 17 entities.
• ANC’s Sello Sekhokho – Reportedly pocketed R14.5 million from 55 contracts, despite lacking the required certification to supply medical products.
• Vusimusi “Cat” Matlala – Allegedly gained over R5 million through three security companies, while being probed for ties to criminal syndicates that infiltrated law enforcement.

These allegations reflect systemic looting at Tembisa Hospital, which is already crippled by chronic understaffing, lack of resources, and poor management.

The Babita Deokaran Connection

The scandal also recalls the tragic murder of whistleblower Babita Deokaran, who exposed the hospital’s corrupt financial practices. Her assassination in 2021 highlighted the deadly risks faced by those fighting corruption in South Africa’s public sector.

SIU Findings: Thousands of Tenders Under Review

The SIU’s investigations into over 4,000 tenders at Tembisa Hospital have revealed shocking findings:

• 111 disciplinary referrals for implicated officials.
• 25 administrative referrals for maladministration.
• 4 criminal referrals linked to corruption.
• 200 service providers under investigation.
• Over R2 billion worth of tenders flagged as corrupt.

The SIU has warned that more findings will be revealed in its upcoming interim report, which may recommend further criminal charges.

Suspicious Fires Raise Alarm

Adding to suspicions, two separate fires broke out at the hospital in areas where procurement documents were kept. Investigators fear this may have been a deliberate attempt to destroy evidence linked to the corruption scandal.

What Comes Next?

The Tembisa Hospital scandal has once again exposed the rot in South Africa’s public health sector, where corruption robs ordinary citizens of life-saving healthcare services. The SIU’s interim report, due for release, is expected to shed more light on:

• Which officials and companies should face prosecution.
• How much of the stolen money can be recovered.
• Measures to prevent future large-scale looting in hospitals.

For now, South Africans await answers – and justice – for billions lost while patients continue to suffer from inadequate medical care.