SIU uncovers R2 billion of fraud at Tembisa Hospital:
The Special Investigating Unit (SIU) has uncovered R2 billion of stolen money from the Tembisa Hospital through three key syndicates enabled by junior officials at the institution and in the Gauteng health department.
The money was intended for the provision of healthcare to the most vulnerable, but instead was “ruthlessly siphoned off through a complex web of fraud and corruption, representing an egregious betrayal of the nation’s trust” SIU head Andy Mothibi said at the release of an interim report on Monday.
“An analysis of 2 207 procurement bundles has revealed serious maladministration and procurement fraud. Key officials from the Gauteng department of health and Tembisa Hospital are accused of benefitting from corrupt payments that facilitated the irregular appointment of service providers, involving money laundering and fraud through fronting and the use of false Supply Chain Management documentation,” he said.
The total value of corrupt payments linked to officials at the Gauteng department of health as well as in Tembisa Hospital amounted to R122 228 000, the interim report showed.
At least 15 current and former officials were proven to be involved in 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,” Mothibi said.
The officials range from entry-level clerks to management-level officials, but the junior officials have caused “more losses” to the hospital.
The SIU has prepared 116 disciplinary referrals against 13 officials, 108 of which were delivered to the Gauteng department of health for maladministration as well as irregular appointment of service providers at the hospital.
Two hundred and seven service providers traded with the hospital under 4 501 purchase orders and each purchase order was linked to a “purported three-quote procurement process purportedly involving three competing bidders”, the investigation showed.
The first of the syndicates mentioned was linked to Hangwani Morgan Maumela, in which the SIU reviewed 1 728 bundles worth R816 560 717 and completed 924 analyses. The SIU traced 41 service providers linked to this particular syndicate and three of the companies that were awarded contracts to the tune of R13 538 292 were linked to Vusimuzi “Cat” Matlala.
Matlala has been implicated in the ongoing Madlanga Commission of Inquiry on allegations KwaZulu-Natal police commissioner Nhlanhla Mkhwanazi made about the infiltration of the criminal justice system by syndicates.
Some of the allegations against Matlala are that his private vehicles were fitted with blue lights and registered as official municipal vehicles in Ekurhuleni. He was also allegedly involved in the improper appointments of senior police officials and contracts. Matlala is also facing murder charges.
The assets identified in the Maumela syndicate amounted to about R520 million, and included several upmarket properties and vehicles.
The SIU also identified a syndicate linked to Rudolph Mazibuko, in which 651 bundles to the value of R283 504 291 were reviewed; and 392 completed analyses showed assets totalling R42 646 356, which also included properties in Gauteng and the Western Cape.
The SIU is also reviewing 1 237 procurement bundles to the value of R596 424 356 linked to an unnamed syndicate “X”. Assets tied to this syndicate were valued at R 150 000 000.
The unit will be working with the National Prosecuting Authority’s (NPA) Asset Forfeiture Unit to seize and liquidate assets that will be redirected to the hospital and departments for proper use.
In addition, the SIU identified six other smaller syndicates operating in the Tembisa Hospital, the details of which are still undergoing investigation.
The SIU said the service providers were appointed using fraudulent documents with many of the procurement processes being circumvented.
“The SIU’s findings indicate severe breaches of trust and authority within Tembisa Hospital’s operations, including fronting and syndicated activities,” Mothibi said.
Furthermore, the investigation found that unsuccessful bidders were also part of the scheme.
“To date, the SIU has been able to identify payments to the combined value of R1 113 270, which were made directly or indirectly by or on behalf of the successful bidder(s) or the syndicates to the unsuccessful bidders who purportedly competed against the successful service provider for specific request for quotes,” Mothibi told journalists.
“The CEO of Tembisa at the time, authorised the appointment of non-compliant bidders raising questions of the lack of oversight from the previous CEO’s office given the frequent approvals of requests for quotations.
“The investigation really highlights a comprehensive disregard for duty by officials at Tembisa and the department. Those responsible for procurement ignored fundamental regulations. Accounting officers abdicated their oversight role entirely.
“The failure of officials to perform their duties allowed for the untapped spending of public funds with no verification of whether what was procured was necessary or represented fair value for the state.
“In a sense, officials were active participants in the malpractice or turned a blind eye, effectively allowing the public purse to be looted through a combination of maladministration, corruption and collusion with third parties,” he added.
The Democratic Alliance’s Gauteng spokesperson on health, Jack Bloom, said the party would closely monitor the referrals made by the SIU report including 116 disciplinary referrals and the four criminal matters sent to the NPA.
“The important thing is that the big fish should not be allowed to get away … We await further criminal referrals to the NPA which should not delay in pursuing charges against the syndicate bosses and their accomplices,” Bloom said in a statement.
“We are disappointed that implicated companies have not yet been blacklisted, and some of them may still be benefiting from government contracts.”
He reiterated the DA’s call for Gauteng premier Panyaza Lesufi to remove Gauteng health and wellness MEC Nomantu Nkomo-Ralehoko and head of department Lesiba Malotana. “They need to be held accountable for continuing irregular spending and service delivery failures.”
Health Minister Aaron Moatsoaledi said the SIU needs to expand its investigations into other hospitals where corruption is also rampant.
Malema to wait another day to know his fate in firearm case:
Economic Freedom Fighters (EFF) president Julius Malema will have to wait another day to know his fate after the judgment in his firearms case was rolled over from Monday to Tuesday morning.
The case was brought by Afrikaner lobby group AfriForum in 2018 after a video showed Malema firing what appeared to be an assault rifle — apparently handed to him by his then bodyguard Adriaan Snyman — in front of a packed crowd at the EFF’s fifth anniversary celebration rally at the Sisa Dukashe Stadium in the Eastern Cape.
Magistrate Twanet Olivier spent the entire Monday reading the testimony and cross-examination of witnesses who testified during the trial in which Malema and Snyman were charged with contravening the Firearms Control Act, including the unlawful possession of firearms and ammunition.
“I have tried to read as fast as humanly possible. We will continue tomorrow and I am confident that there will be sufficient time for judgment to continue on 30 September. You are both on bail and bail is extended and warned to be present to proceed by 9am,” she told Malema and Snyman at the day’s adjournment.
Olivier had warned when she started delivering the judgment that it would take a while to conclude, because it was necessary to provide context on how she arrived at her decision, and she needed to repeat evidence and certain aspects of cross-examination.
A visibly angry Malema later left the court, flanked by his top five officials and EFF supporters. The Red Beret leader says the seven-year-old case is politically motivated.
AfriForum accused Malema of putting lives in danger by firing a gun in a populated area, while Snyman is accused of handing Malema the rifle.The state argued that this was reckless and endangered lives. Malema and Snyman, through their lawyers, argued that there was insufficient evidence to prosecute them.
During the trial, one of the witnesses, a cleaner at the Buffalo City municipality and was tasked with cleaning the stadium after the rally, told the court that she found an empty cartridge, which was later given to the police.
But Malema argued that the firearm in question was fake and contained no live ammunition, and that it was a prop gun firing blanks. He said any object lacking live rounds cannot be considered a firearm and thus he had not breached the Firearms Control Act.
Metropolitan Collective Shapers Goes National:
South Africa continues to face one of the highest youth unemployment rates globally, with many young people struggling to find sustainable opportunities. The Metropolitan Collective Shapers (MCS) programme is designed to contribute towards turning this challenge into an opportunity for youth entrepreneurs by equipping them with the tools, skills, and networks they need to build thriving businesses that not only create jobs and build stronger communities but also drive inclusion for young people in economic growth.
While entrepreneurship is a significant contributor to job creation, figures show that around 70% of SMMEs fail within the first five to seven years. Small businesses owned by the under-34 age group represent only 6.8% of all SMMEs, which is an indication of the additional challenges that young entrepreneurs face, not only to survive but to thrive.
Young entrepreneurs are dynamic and innovative, tech-savvy and ready to use social media and technology to their advantage, but they face several obstacles that prevent many of them from creating sustainable businesses. These include financial investment, access to market opportunities and exposure. In addition to these, many young South Africans, facing endless hardship, also lack the life experience, resilience required to establish and grow a business that will be their legacy.
There are many South African corporates contributing financially to our vibrant SMME culture. But ignoring the deeper needs of entrepreneurs, like mentorship and mental health support, is to overlook the foundation of a young business owner’s success,” said Lindiwe Gumede, Chief Marketing Officer at Metropolitan. “Supporting the human behind the business, especially when it comes to building resilience and managing the daily stresses of running a business, remains a blind spot in most entrepreneurship development programmes. MCS takes a more holistic approach to business incubation, and this has greatly contributed to its success to date.”
MCS is now in its fourth iteration, and from three regional campaigns, the programme is now going national, putting the spotlight on the agricultural and logistics sectors. The programme has already helped several entrepreneurs achieve tangible growth. With proven results in Polokwane, Tshwane and KZN, Pete Mashaphu, a poultry farmer, doubled his flock and expanded his infrastructure using MCS prize money. Benjamin Nkanyane scaled his vegetable farm and now supplies national retailers. Thabiso Mhlongo renovated his store using local builders, then secured SEFA funding to launch a mobile kitchen, creating jobs and feeding his community. Dikeledi Shai transformed a chapel into a wedding venue, hosting over 20 weddings and hiring additional staff, all thanks to MCS support – the 2026 edition is aiming to reach more young entrepreneurs in these industries that offer the greatest potential for growth and job creation.
Named for the collective legacy it seeks to achieve along with participants in its programme, MCS enables young entrepreneurs to lift as they rise and to give back to their communities, whether with job opportunities, feeding schemes or in other innovative ways. The MCS programme offers young entrepreneurs both financial and non-financial support, including investment funding, business leadership coaching, national exposure, access to real market opportunities, ongoing mentorship, branding and media training. MCS is committed to building enduring success for the nation’s most deserving entrepreneurs.
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