The Special Investigating Unit (SIU) has laid bare a devastating picture of systemic corruption at Tembisa Hospital, exposing how billions meant for healthcare were siphoned off through fraudulent procurement schemes. On Monday, SIU head Advocate Andy Mothibi released the unit’s interim report, describing the looting as “an egregious betrayal of the nation’s trust.”
The report reveals that three major syndicates, supported by hospital insiders and senior officials in the Gauteng Department of Health, orchestrated a plunder exceeding R2 billion. The funds were meant to improve healthcare for the most vulnerable South Africans but were instead laundered through fake suppliers, luxury properties, and high-end vehicles.
“This staggering sum, intended for the provision of healthcare, was ruthlessly siphoned off through a complex web of fraud and corruption,” said Mothibi. “The scale of plunder at Tembisa Hospital is both shocking and deeply disturbing.”
According to the SIU, investigators examined over 2,200 procurement bundles and uncovered widespread irregularities in how contracts were awarded. The hospital and provincial health department officials allegedly colluded with service providers to exploit a flawed “three-quote system.”
Orders were deliberately split to remain under the R500,000 threshold that would have triggered stricter oversight. Fake quotes and fraudulent supply chain documentation were routinely used, allowing companies without capacity to score lucrative contracts.
The SIU estimates that irregular payments to corrupt officials and employees amount to more than R122 million so far. At least 15 current and former officials have been implicated in fraud, collusion, and money laundering.
The Maumela Syndicate
One of the most striking revelations involves the so-called Maumela Syndicate, named after businessman Hangwani Morgan Maumela. The SIU has linked Maumela to 41 suppliers that benefited from irregular contracts worth more than R816 million.
The report alleges that Maumela’s personal wealth ballooned through the scheme, with assets identified worth over R520 million. These include luxury properties in Cape Town, Sandton, Hartbeespoort, Zimbali Estate in Durban, and several multi-million rand vehicles.
Among the vehicles seized or under preservation orders are a Lamborghini Urus Aventador SVJ, a Lamborghini Huracan STO, a Bentley Continental GT, and high-value boats.
The SIU notes that three companies linked to controversial businessman Vusimuzi “Cat” Matlala were also awarded contracts worth more than R13 million under Maumela’s network.
Critically, the SIU report highlights growing concerns around Maumela’s alleged personal ties to President Cyril Ramaphosa. Opposition parties and civil society have long questioned why Maumela continued to receive state contracts despite previous controversies, with some suggesting that his family connections shielded him from accountability. The interim report stops short of confirming these links but notes that the allegations “require further probing.”
Other syndicates
The investigation also exposed the Mazibuko Syndicate, linked to businessman Rudolph Mazibuko. This network allegedly benefited from contracts worth R283 million. Properties valued at more than R42 million were traced to Mazibuko’s operations, many located in Gauteng and the Western Cape.
A third group, referred to as Syndicate X, is currently under review. Contracts worth nearly R600 million were processed through this channel, with at least R150 million in assets identified so far.
Additional smaller syndicates, labelled A through F, were also found to have benefited from irregular procurement practices, collectively siphoning tens of millions more.
Officials implicated
The SIU has so far identified 15 officials ranging from entry-level clerks to management staff at both Tembisa Hospital and the Gauteng Department of Health.
Disciplinary referrals have already been prepared for 13 officials, with 108 cases handed to the provincial department. Some cases will proceed to civil litigation, while others are being referred to the National Prosecuting Authority (NPA) for criminal charges.
“The corruption we are seeing is not confined to one or two individuals. It is systemic, involving multiple officials who abused their positions of authority to enrich themselves and their partners in crime,” Mothibi said.
Modus Operandi
Investigators uncovered repeated patterns of fraud: Procurement splitting: Orders deliberately kept below R500,000 to avoid tender scrutiny. Fake quotations: Suppliers colluded to produce fraudulent three-quote systems, giving an illusion of competition. Collusion: Multiple invoices for similar amounts generated within short timeframes to disguise kickbacks. And Fronting: Companies used straw directors and falsified documents to qualify as vendors.
The SIU emphasised that the fraudulent schemes were coordinated, showing a deliberate abuse of supply chain management policies.
Seized assets
To date, the SIU working with the NPA’s Asset Forfeiture Unit has preserved properties and luxury vehicles linked to the syndicates. Notable among these are: A R75 million Bantry Bay mansion. Two Sandton properties worth millions. Luxury Zimbali Estate home in KwaZulu-Natal. Fleet of high-end Lamborghinis and Bentleys. And speedboats and other recreational assets.
“These assets represent the blood and sweat of ordinary South Africans who pay their taxes in the hope of receiving quality healthcare,” Mothibi said.
Ongoing investigations
The SIU stressed that the interim report reflects only part of the picture. The investigation, expected to run until November 2027, will continue to follow the money, with further disciplinary, civil, and criminal referrals anticipated.
The unit is collaborating with the Hawks, SAPS, SARS, the Financial Intelligence Centre, and the NPA to ensure that prosecutions and asset recoveries follow swiftly.
Mothibi also acknowledged the role of whistleblowers in exposing the scandal and pledged to protect them.
A systemic betrayal
The Tembisa scandal represents one of the most significant blows yet to the credibility of South Africa’s public healthcare system. With over R2 billion lost, the consequences for patients at one of Gauteng’s busiest hospitals are devastating.
Instead of medicines, equipment, and improved facilities, taxpayers’ money bought Lamborghinis, seaside mansions, and luxury estates.
The SIU’s revelations raise serious questions not only about governance at the Gauteng Department of Health but also about political connections that may have enabled syndicate leaders to operate unchecked.
The allegations linking Maumela to President Ramaphosa, though unproven, are likely to fuel political controversy and intensify calls for the President to account for his relationship with individuals implicated in the looting.
For now, the SIU promises relentless pursuit: “We will continue to follow the money, seize illicit assets, and hold those responsible accountable,” Mothibi vowed.
