By Simon Nare
The Special Investigating Unit (SIU) said on Monday it had uncovered three major syndicates that looted funds meant for healthcare at Tembisa Hospital, in a scheme involving procurement fraud, fronting and money laundering, and which resulted in the fleecing of about R2 billion.
The largest network, linked to businessman Hangwani Morgan Maumela (allegedly related to President Cyril Ramaphosa via a previous marriage) is under investigation for 1,728 procurement bundles worth R816.6 million.
The SIU has traced 41 service providers to Maumela and identified assets of about R520 million, including luxury vehicles – at least four Lamborghinis and a Bentley – and properties in Bantry Bay, Sandton, Zimbali Estate and Hartbeespoort.
Some contracts were connected to Vusimuzi “Cat” Matlala, who is linked to three companies awarded R13.5 million in deals. The National Prosecuting Authority’s Asset Forfeiture Unit has preserved several of Maumela’s properties and vehicles pending tribunal proceedings.
The second network, tied to Rudolph Mazibuko, is under review for 651 bundles worth R283.5 million.
Completed analyses show assets of more than R42.6 million, including multiple properties in Gauteng and the Western Cape.
The third network, referred to as Syndicate X, involves 1,237 procurement bundles valued at R596.4 million.
Investigators have identified irregular procurement practices and conduit accounts used to launder funds.
Assets of roughly R150 million have been traced to the group.
Graphic: Sinike Ngewu
SIU head, Advocate Andy Mothibi, made the syndicates known during a press briefing at Tembisa Hospital on Monday, where he released the anti-corruption authority’s interim report into the state facility.
He said additional smaller syndicates were linked through shared directorships and financial flows.
Mothibi said that the amounts stolen could increase as the SIU continues its “complex” investigations.
He said assassinated whistleblower Babita Deokaran, who worked at the Gauteng Department of Health, had flagged R850m in suspicious payments at the hospital before her murder.
“The investigation currently involves 207 service providers that traded with the Tembisa Hospital under 4501 [purchase orders]. Each PO is linked to a purported three-quote procurement process purportedly involving three competing bidders.
“The total value of matters under Investigation by the SIU in terms of the Proclamation is R2 043 293 404.10. These numbers are constantly updated as new companies are identified through ongoing investigations and the flow of funds involving irregularly appointed service providers at the Tembisa Hospital,” Mothibi said.
At the same briefing, Health Minister Aaron Motsoaledi said that a whistleblower was in hiding after surviving two assassination attempts.
He said it was unacceptable that the individual had been stripped of a normal life, while those accused of stealing billions in taxpayers’ money continued to roam the streets in luxury cars.
“What kind of society are we living in?” asked Motsoaledi.
Mothibi said the SIU had identified at least 15 current and former officials involved in activities such as corruption, money laundering, collusion, and bid rigging with improperly appointed service providers at the hospital.
“These individuals abused their positions throughout the procurement process to benefit these providers and enrich themselves. The number of identified officials is expected to rise as the investigation continues. The officials range from entry-level clerks to management-level officials.”
To date, 116 disciplinary referrals had been prepared against 13 officials, he said, of which 108 had been delivered to the Gauteng Department of Health “relating to maladministration, as well as the irregular appointment of service providers at the Tembisa Hospital”.
“One matter was held back for the preparation of civil litigation, and seven additional referrals were finalised in preparation for handover to the GDOH. We have observed that the officials implicated are at lower levels of employment. These are the employees who have, to date, caused more losses to the Tembisa Hospital,” said Mothibi.
“The SIU found that not only did officials within the SCM process benefit from their illicit actions, but also officials who acted as end-users signing for goods received. These actions lead one to conclude that all GDOH records related to the procurement and receiving of goods at Tembisa Hospital were purposely and fictitiously generated by GDOH officials in an attempt to make the processes appear legitimate.”
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