The Special Investigating Unit (SIU) has uncovered mafia-style looting of over R2 billion at Tembisa Hospital. According to the SIU’s interim report, released on 29 September 2025, three powerful syndicates and several smaller groups manipulated procurement processes, siphoning money meant for healthcare.
Advocate Andy Mothibi, head of the SIU, called the fraud “an egregious betrayal of the nation’s trust.” He stressed that funds meant to serve vulnerable patients were instead “ruthlessly siphoned off through a complex web of fraud and corruption.”
How the R2bn Was Looted
The fraud exploited the “three-quote” procurement system. Officials deliberately kept transactions below the R500,000 tender threshold to avoid scrutiny. According to the SIU, this created fertile ground for order splitting, fake bidding, and collusion between service providers.
“It must be highlighted that none of these transactions resulted in goods being delivered… It is all smoke and mirrors. The hospital derived no value for money,” the SIU report states.
Read more in our detailed coverage here: Tembisa Hospital Corruption Report: Motsoaledi & Lesufi Join SIU.
Scale of the Fraud: Key Figures
The SIU’s findings show the staggering scope of the Tembisa Hospital R2bn fraud:
- 2,207 procurement bundles analysed
- 207 service providers linked
- 4,501 purchase orders investigated
- R122.2 million traced directly to corrupt payments benefiting officials
- 15 current and former officials implicated
- 116 disciplinary referrals and 4 criminal referrals to the NPA
The Three Syndicates Identified
The SIU traced the bulk of the looting to three coordinated groups:
1. The Maumela Syndicate
Linked to businessman Hangwani Morgan Maumela, this group is the largest, with R816.5 million in procurement bundles under review. Investigators traced 41 suppliers and assets worth R520 million, including:
- Luxury homes in Gauteng and Cape Town, including a R75 million Bantry Bay mansion
- Multiple Lamborghinis, a Bentley, and a boat
2. The Mazibuko Syndicate
This network controlled R283.5 million in procurement bundles, with assets worth about R42.6 million identified.
3. Syndicate X
A shadowy group handling R596.4 million in contracts, with traced assets of roughly R150 million.
The SIU confirmed that preservation orders obtained by the National Prosecuting Authority’s Asset Forfeiture Unit (AFU) have already frozen properties and vehicles worth hundreds of millions linked to these syndicates.
Asset Freezes and Recoveries
The AFU has secured High Court orders preserving assets linked to the syndicates. These include:
- Four Lamborghinis
- One Bentley
- A luxury boat
- Multiple high-end homes
NPA spokesperson Phindi Mjonondwane said:
“The property, valued at about R326 million, includes luxury vehicles and prime real estate.”
The Role of Officials and Procurement Manipulation
The SIU’s analysis revealed that both senior and junior officials at Tembisa Hospital and the Gauteng Department of Health colluded with private companies. Officials facilitated irregular contracts, while service providers acted as conduits for money laundering.
Alarmingly, many transactions were disguised as competitive bids. In reality, “losing” bidders were linked to the same network as the “winning” company, creating a façade of compliance.
Get the full story here: Bheki Cele Denies Involvement in PKTT Orders, Says Dumisani Khumalo.
From Whistleblowing to National Outrage
The scandal has roots in the brave whistleblowing of Babita Deokaran, a senior Gauteng health official assassinated in 2021 after flagging suspicious payments at Tembisa Hospital. Her warnings triggered closer scrutiny, eventually leading to the SIU probe after Premier Panyaza Lesufi referred the matter in September 2022.
The unfolding revelations validate her concerns, placing the case at the heart of South Africa’s ongoing fight against corruption.
Gauteng Premier and Health Ministry Cooperation
Advocate Mothibi confirmed that the SIU worked closely with the Office of the Gauteng Premier and the Minister of Health to pursue the investigation.
This collaboration has extended to other areas. “Our working relationship with the Minister of Health has enabled us to uncover wrongdoing… in the Home Affairs Refugee Centres and medico-legal investigations,” Mothibi said.
Wider Impact on Healthcare Services
The looting has raised urgent concerns about the effect on healthcare delivery. Funds intended for medicines, staff salaries, and hospital upgrades were lost. This occurred at a facility already strained by overcrowding and resource shortages.
Community leaders in Tembisa have voiced anger, demanding accountability. Civil society groups argue that patients were denied life-saving care while syndicates enriched themselves with supercars and luxury estates.
Disciplinary and Criminal Referrals
The investigation unit has referred 116 officials for disciplinary processes and handed four cases to the NPA for criminal prosecution. The unit has warned that more cases may follow as the investigation expands.
The investigation remains ongoing, with the investigation unit confirming that the R2.043 billion figure may still rise as additional companies are uncovered.
The Way Forward: Accountability and Reform
Experts argue that reforms in supply chain management are essential. Transparent procurement systems, digital tracking, and stronger whistleblower protections are critical to prevent future abuses.
Find out more in our report: Matthew Chaskalson Leads Madlanga Commission After Terry Motau Quits.
The Gauteng Department of Health has pledged to cooperate fully with investigators. Premier Lesufi has promised to act on the SIU’s findings and ensure implicated officials face consequences.
A Defining Moment in the Fight Against Corruption
The exposure of Tembisa Hospital R2bn fraud highlights the depth of corruption in South Africa’s public health system. It also demonstrates the courage of whistleblowers and the importance of relentless investigation.
As more details emerge, the public demands accountability. For now, the SIU’s interim report stands as a watershed moment, revealing how greed undermined healthcare and betrayed a nation’s trust.
