SIU uncovers R2 billion fraud scheme at Tembisa Hospital
Tembisa Hospital in Gauteng. Photo Credit- TMPH/ Facebook
The Special Investigating Unit (SIU) has revealed that more than R2 billion was siphoned from Tembisa Hospital in Gauteng through a sophisticated network of seven fraud syndicates, depriving vulnerable patients of essential healthcare services. The findings, detailed in an interim report released on Monday at the hospital, stem from a three-year probe initiated after whistleblower Babita Deokaran exposed irregularities in procurement processes. Deokaran, who was assassinated in 2021, had flagged suspicious payments totaling over R850 million in a single year. SIU head Andy Mothibi described the scandal as a “ruthless” exploitation, stating, “This staggering sum of money intended for the provision of healthcare at Tembisa Hospital, to take care of the most vulnerable, was instead siphoned off through a complex web of fraud and money laundering.”
The extraction methods involved issuing dubious purchase orders to shell companies, enabling the laundering of funds through pliant hospital officials. Key among the syndicates was that led by Hangwani Morgan Maumela, nephew of President Cyril Ramaphosa from a previous marriage, which alone pocketed over R816 million via 1,728 fraudulent orders. Another group, the Mazibuko syndicate, extracted R283 million, while “Syndicate X” received more than R596 million across over 1,000 orders. Additionally, R122 million in kickbacks flowed directly into accounts held by Gauteng Health Department employees, highlighting deep-rooted corruption within the public health system. Companies linked to Vusimusi “Cat” Matlala, part of Maumela’s operation, benefited by nearly R15 million.
The SIU’s ongoing investigation aims to dismantle these networks and hold perpetrators accountable, though no recoveries or prosecutions have been announced yet. The report underscores systemic vulnerabilities in provincial healthcare procurement, prompting calls for stricter oversight to prevent future looting. As the probe continues, it serves as a stark reminder of the human cost of corruption in South Africa’s public sector, where funds diverted from hospitals exacerbate service delivery crises for millions.
FAQs on Tembisa Hospital fraud investigation
What is the main finding of the SIU investigation at Tembisa Hospital?
The SIU uncovered seven syndicates that extracted over R2 billion through fraudulent purchase orders and money laundering, funds meant for patient care.
Who was Babita Deokaran and why is she significant?
Babita Deokaran was a whistleblower who exposed procurement irregularities at Tembisa Hospital in 2021; she was assassinated shortly after, sparking the SIU probe.
How much money was linked to Hangwani Morgan Maumela’s syndicate?
Maumela’s group, involving over 1,728 dubious orders, extracted more than R816 million from the hospital.
What role did Gauteng Health employees play in the fraud?
Employees received R122 million in kickbacks into their personal accounts, facilitating the laundering process.
What actions are being taken following the SIU report?
The investigation remains ongoing, with the interim report released to guide further probes, though no specific recoveries or legal actions have been detailed yet.
