By REGINALD KANYANE

11 September 2025- Two preservation applications and orders secured by the Asset Forfeiture Unit (AFU) of the National Prosecuting Authority (NPA) were served on members of two syndicates who are implicated in fraud and corruption at Tembisa Hospital. The investigation into this matter was precipitated by the receipt of a report from the late Babita Deokaran, who was assassinated on 23 August 2021, and who was the Chief Director: Financial Accounting at the Gauteng Department of Health.

The NPA regional spokesperson in Gauteng, Phindi Mjonondwane said her report detailed suspected procurement irregularities within Tembisa Hospital’s Supply Chain Management. Mjonondwane said the Specialised Audit Services Unit (SAS) of the National Treasury (NT) conducted a review of Tembisa Hospital’s Basic Accounting System payment data to determine all payments made to the companies that were identified by Deokaran as having benefited from the unlawful activities.

“It also conducted a review of the Tembisa Hospital’s Central Supplier Database and the Companies and Intellectual Property Commission records of the implicated companies to verify the registration and directorships of the companies, to identify any additional related companies involved in the unlawful activities and to review payments made to those companies.

“The review covered the period between April 2016 and August 2022. The review by the SAS confirmed the possible large-scale corruption reported by Deokaran. The SAS established that 14 entities controlled by the Maumela syndicate apparently irregularly and unlawfully benefited from contracts from the Tembisa Hospital with a cumulative value in excess of R400 million,” she said.

Mjonondwane further said the SAS established that 18 entities controlled by the Mazibuko syndicate apparently irregularly and unlawfully benefited from contracts from the Tembisa Hospital with a cumulative value in excess of R300 million. She added that on 14 August 2025, the AFU was granted an order relating to property owned by members of the Maumela syndicate.

“The property, valued at approximately R326 million, includes high end residential property in affluent areas and luxury vehicles such as four Lamborghinis, a Bentley and a boat.

“On 27 August 2025, the AFU was granted an order relating to property owned by members of the Mazibuko syndicate. The property, valued at approximately R47 million, includes high end residential property in affluent areas and luxury vehicles such as three Mercedes Benz valued in total at R10 million and a Land Rover valued at R2 million,” she said.

Mjonondwane said the applications by the Asset Forfeiture Unit are premised on forensic investigations by firms appointed to assist in the investigation concerning allegations of procurement fraud and corruption that took place at the Tembisa Hospital during the period from January 2019 to August 2022.

She said forensic investigations revealed a multitude of irregularities in the procurement processes with a manipulation of the processes in the award of contracts for the supply of goods and/or services to Tembisa Hospital which favoured entities associated with the syndicates.

“In instances companies who supposedly submitted quotes in the bidding process denied having made any such submissions in the bidding process. In other instances, in cahoots with the syndicates, cover quoting companies were used to submit bids which always favoured the syndicate entities in the process.

“The analysis conducted of the flow of funds indicates that most of the funds received by the syndicate entities were used to purchase assets, to pay bribes to officials and covering bidders and by members of the syndicates for personal use/ to fund their extravagant lifestyles,” said Mjonondwane.

She said a very small percentage of the total amount received could possibly be ascribed to the purchase of supplies for delivery in terms of the contracts.

The Deputy National Director of the National Prosecuting Authority responsible for the Asset Forfeiture Unit, Advocate Ouma Rabaji-Rasethaba, commented that the fight for justice for the people of our country continues and again stressed that ordinary South Africans are victims of crime and corruption every time they face water shortages, load shedding or empty hospital shelves.

“When there is no water, when there is no electricity, no textbooks, no medication, no hospitals, we are all suffering. Denying South Africans health care including medication in hospitals is a travesty of justice,” she said.

Meanwhile, advocate Rabaji-Rasethaba also commended the contribution of NT and the intensive investigations conducted by the Special Investigating Unit (SIU) and the support rendered by the NT and the SIU to the AFU in its attention to this matter. She said the outcome demonstrates the impact of collaborative efforts by government agencies working together in the fight for justice.  

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