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Johannesburg – The Special Investigating Unit (SIU) has uncovered that nearly R2 billion has been looted from Tembisa Hospital by three criminal syndicates, through rampant corruption, procurement irregularities, and collusion.
Key Players & Syndicates Implicated
- Hangwani Morgan Maumela, Vusi “Cat” Matlala, and Rudolf Mazibuko have been named as leaders of the three major syndicates.
- At least 15 hospital officials are implicated in facilitating or enabling the fraudulent contracts.
How the Corruption Worked
- The malpractices span procurement fraud, manipulation of quote processes, and awarding contracts to companies with inflated pricing, fake or inadequate credentials.
- Syndicates reportedly used “cover quoting” (i.e. collusion among bidding companies) to ensure tenders go to preferred firms. Some winning bidders allegedly deny even bidding.
Asset Preservation & Recovery
- The Asset Forfeiture Unit (AFU) has obtained preservation orders to freeze assets tied to the syndicates:
- Approx. R326 million worth of assets linked to the Maumela syndicate, including luxury cars (Lamborghinis, a Bentley), high-end properties, and a boat.
- Roughly R47 million in assets linked to the Mazibuko syndicate.
Whistleblower’s Role & Background
- The investigations gained momentum after Babita Deokaran, a chief director at the Gauteng Department of Health, flagged suspicious payments and irregularities at Tembisa Hospital.
- Deokaran was assassinated in August 2021, and her alerts are central to the case.
Government Response & Disciplinary Actions
- Several hospital officials have been suspended or are under investigation, including senior executives and supply chain staff.
- The SIU and other state bodies are pushing for both criminal prosecutions and disciplinary measures.