By Johnathan Paoli
The Directorate of Priority Crime Investigations (Hawks) has arrested a 37-year-old suspect at OR Tambo International Airport after he returned from overseas, in connection with an investigation into alleged multimillion-rand tender fraud at Tembisa Hospital.
Hawks spokesperson Colonel Katlego Mogale said the Serious Corruption Investigation team arrested the suspect on Friday as investigators continued their efforts to bring those implicated in the scandal to book.
“The suspect is alleged to have been part of the complex investigation into the multimillion-rand tender fraud in the Tembisa Hospital procurement process,” Mogale said.
The arrest marks the latest development in the sprawling corruption investigation into procurement at the hospital in Ekurhuleni, where the Special Investigating Unit (SIU) previously uncovered evidence of what it described as the systematic looting of more than R2 billion intended for healthcare at the facility.
According to the Hawks, the investigation involves allegations of fraud, corruption, forgery and uttering, or passing off documents as authentic, contraventions of the Public Finance Management Act and money laundering.
At the centre of the allegations is the alleged manipulation of the hospital’s Request for Quotations (RFQ) system, which was used for procurement transactions below the R500,000 threshold.
“It is alleged that certain officials at the hospital colluded with service providers to exploit the RFQ system for procurement transactions below the R500,000 threshold. This approach was intentionally employed to circumvent the formal tender process,” Mogale said.
Last year the SIU released an interim report which found that three major syndicates had allegedly misappropriated more than R2 billion meant for healthcare at Tembisa Hospital.
SIU spokesperson Kaizer Kganyago said the investigation had analysed 2,207 procurement bundles and uncovered serious maladministration and procurement fraud involving officials from both the Gauteng Department of Health and Tembisa Hospital, as well as service providers.
“This staggering sum, intended for the provision of healthcare to the most vulnerable, was instead ruthlessly siphoned off through a complex web of fraud and corruption, representing an egregious betrayal of the nation’s trust,” Kganyago said at the time.
The investigation identified 207 service providers who traded with Tembisa Hospital under 4,501 purchase orders, with the total value of matters under investigation standing at more than R2.04 billion.
The SIU identified three major groupings, including the Maumela Syndicate, linked to businessman Hangwani Morgan Maumela, the Mazibuko Syndicate, linked to Rudolph Mazibuko, and an unnamed “Syndicate X”.
Kganyago said the Maumela-linked investigation alone involved procurement bundles worth more than R816 million, while the unit had traced 41 suppliers or service providers allegedly linked to the syndicate.
Three companies awarded contracts worth R13.5 million in that grouping were linked to controversial businessman Vusimusi “Cat” Matlala, who is currently in custody for three other cases, including charges of attempted murder and corruption.
The unit said its investigation had uncovered a procurement system in which transactions were allegedly deliberately kept below R500,000 to avoid competitive tender processes.
Service providers were allegedly appointed using fraudulent documentation and a manipulated three-quote system, while investigators found evidence suggesting collusion between winning and unsuccessful bidders.
The SIU has also identified at least 15 current and former officials allegedly involved in corruption, money laundering, collusion and bid rigging, with corrupt payments linked to officials and employees estimated at more than R122 million.
To date, the unit has prepared 116 disciplinary referrals against 13 officials and referred four corruption matters to the National Prosecuting Authority involving more than R42 million.
The investigation was initially triggered by concerns raised by the late Gauteng Health financial accounting head and whistle-blower Babita Deokaran, who found that 63% of purchase orders worth between R400,000 and R500,000 during a four-month period in 2021 were linked to Tembisa Hospital.
Deokaran was assassinated in August 2021 shortly after flagging suspicious procurement patterns.
The SIU has said its investigation is continuing and is expected to be completed by November 2027.
The suspect is expected to appear in the Specialised Commercial Crimes Court sitting at the Palm Ridge Magistrates’ Court on Monday, where he will face charges relating to fraud, corruption and money laundering.
