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Tembisa hospital corruption: NPA secures R326m forfeiture order against Maumela syndicate

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By Johnathan Paoli

The National Prosecuting Authority’s (NPA) Assets Forfeiture Unit (AFU) has secured a final court order forfeiting assets worth about R326 million linked to the alleged [Hangwani] Maumela syndicate, in a major breakthrough in efforts to recover the proceeds of alleged procurement fraud at Tembisa Hospital.

The Johannesburg High Court granted the final forfeiture order on Monday, confirming an earlier preservation order issued on 14 August 2025 and transferring ownership of an extensive portfolio of luxury properties, supercars and other high-value assets to the State.

National Director of Public Prosecutions Advocate Andy Mothibi described the ruling as a significant step in the fight against corruption and organised crime.

“The pursuit of justice for the people of South Africa continues, particularly in the fight against corruption,” Mothibi said.

“Our people become victims of crime and corruption when they face inadequate healthcare, under-resourced health facilities, medicine shortages and a lack of essential equipment. This is a travesty of justice.”

The forfeiture order forms part of the NPA’s efforts to strip the alleged syndicate of assets believed to have been acquired through unlawful government contracts awarded between January 2019 and August 2022.

Among the forfeited assets are luxury residential properties in some of South Africa’s most exclusive suburbs, including a Bantry Bay mansion valued at R88.57 million, two Sandhurst properties worth a combined R141.41 million, a Pecanwood Estate home in Hartbeespoort valued at R13.66 million, a Zimbali Coastal Estate property in Ballito worth R9.41 million, and apartments in Three Anchor Bay, Cape Town, valued at R41.5 million.

The order also covers several luxury vehicles and recreational assets, including a Lamborghini Aventador SVJ, Lamborghini Huracan STO, Lamborghini Aventador Ultimae Coupe, Lamborghini Urus, Bentley Continental GT V8, Isuzu D-Max, a Regency 250 LE3 luxury boat and a multipurpose trailer.

According to the NPA, the forfeiture applications stem from extensive forensic investigations into alleged procurement fraud and corruption at Tembisa Hospital.

The investigation was launched after information uncovered by slain Gauteng Department of Health official Babita Deokaran, who served as Chief Director of Financial Accounting and exposed suspected procurement irregularities within the hospital’s supply chain management system before she was assassinated on 23 August 2021.

Her disclosures led to a comprehensive forensic investigation conducted with the National Treasury’s Specialised Audit Services Unit, which analysed hospital payment records, supplier registrations and Companies and Intellectual Property Commission records covering the period from April 2016 to August 2022.

According to the NPA, investigators identified 14 companies allegedly controlled by the Maumela syndicate that unlawfully benefited from hospital contracts worth more than R400 million.

The investigation allegedly uncovered systematic manipulation of procurement processes, including the use of “cover quoting” companies to create the appearance of competitive bidding while ensuring contracts were awarded to preferred suppliers.

Investigators also found that some companies listed as bidders denied ever submitting quotations for the tenders.

The NPA said the investigation traced contract payments to the purchase of luxury properties, exotic vehicles and other high-value assets.

Authorities further allege that some of the proceeds were used to pay bribes to public officials and companies involved in the procurement process, while only a small portion of the funds was spent on supplying goods and services to the hospital.

Mothibi said the AFU remains one of the State’s most effective tools in disrupting organised crime.

“The Assets Forfeiture Unit is an important tool to disrupt syndicates and ensure that they do not use the same money to fight the State,” he said.

Deputy National Director of Public Prosecutions responsible for the AFU, Advocate Chuma Mtengwane, said proceeds from the sale of the forfeited assets would be directed towards strengthening South Africa’s public healthcare system.

The NPA said the successful forfeiture demonstrated the value of coordinated action between law enforcement agencies, forensic investigators and the National Treasury in recovering the proceeds of corruption and returning misappropriated public funds for the benefit of citizens.

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