The Special Investigating Unit uncovers a massive fraud scheme involving over R2 billion meant for healthcare at Tembisa Hospital.
Credits: Health-e News
By Duncan Mnisi
Tembisa — The Special Investigating Unit (SIU) has revealed a shocking case of corruption and theft involving more than R2 billion in funds intended for healthcare services at Tembisa Hospital.
The investigation uncovered three major syndicates accused of siphoning off the money through fraud, corruption, and money laundering.
In a recent report, SIU head Andy Mothibi explained how officials and service providers manipulated procurement processes for personal gain. “We have identified irregularities, fraudulent activities, and corrupt practices by officials and service providers,” said Mothibi.
Although the investigation is ongoing, early findings point to a complex web of illegal activities.
The SIU, working closely with the Office of the Gauteng Premier, has identified three main syndicates:
Maumela Syndicate: Linked to Hangwani Morgan Maumela, this group is responsible for R816 million in irregular procurement. Assets linked to Maumela include luxury vehicles and properties in Bantry Bay, Sandton, and Zimbali, collectively valued at over R520 million. Several properties and high-end cars, including Lamborghinis and Bentleys, have already been seized.
Mazibuko Syndicate: Associated with Rudolph Mazibuko, this group controlled assets worth R42 million, including properties in Gauteng and the Western Cape.
Syndicate X: Comprised of several smaller groups, this network is linked to R596 million in procurement fraud, with assets estimated at R150 million.
The investigation has also implicated at least 15 current and former officials from the Gauteng Department of Health and Tembisa Hospital. They stand accused of accepting bribes, money laundering, and bid rigging.
So far, 116 disciplinary referrals have been made against 13 officials, with some also facing civil litigation.
The syndicates’ modus operandi included falsified procurement documents, collusion between service providers and officials, and splitting contracts to bypass proper bidding processes.
Funds were often channeled to front companies or intermediaries, with no goods or services delivered.
“All the money went from the hospital to fronts and beneficiaries,” the SIU said.
The SIU is now working to recover stolen assets and plans to continue its investigation until November 2027.
The agency also cautioned that senior officials may be implicated and called for stricter vetting and oversight to curb future corruption.
“This betrayal of trust is unacceptable. We will pursue every cent stolen and ensure justice is served,” Mothibi declared.
