The Special Investigating Unit (SIU) says its investigation into corruption at Tembisa Hospital, in Ekurhuleni, has uncovered three coordinated syndicates, responsible for the looting of over R2 billion meant for healthcare.
“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,” Head of the SIU, Advocate Andy Mothibi said on Monday.
Addressing the media at the hospital where an interim report on the investigation on corruption at the facility was released, Mothibi said as complex as the probe had been, they had been able to uncover irregularities, fraudulent activities and corrupt activities by officials and service providers.
In September 2022, the Office of the Premier referred matters to the SIU to be investigated. The unit has since then analysed at least 2 207 procurement bundles.
“Key officials from the Gauteng Department of Health (GDOH) and Tembisa Hospital are accused of benefiting 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,” Mothibi said.
The investigation currently involves 207 service providers which traded with the Tembisa Hospital under 4 501 purchase orders (PO). Each PO is linked to a purported three-quote procurement process purportedly involving three competing bidders.
“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.
The syndicates are the Maumela syndicate, Mazibuko syndicate and the X syndicate.
The Maumela syndicate is linked to Hangwani Morgan Maumela; the Mazibuko syndicate is linked to Rudolph Mazibuko while investigations are continuing into the X syndicate.
The SIU is reviewing 1728 bundles worth R816 560 710 related to the Maumela syndicate and has completed 924 analyses, uncovering significant irregularities.
The SIU has also traced 41 suppliers or service providers linked to Maumela; three of the companies that were awarded contracts to the value of R13 538 292 in this syndicate are linked to Vusimuzi Matlala.
With regard to the Mazibuko syndicate, the SIU reviewed 651 bundles valued at R283 504 291, with 392 completed analyses revealing assets worth R42 646 502, including multiple properties in the Western Cape and Gauteng.
With regard to X syndicate, the SIU is currently assessing 1237 procurement bundles, valued at R596 424 356.
Apart from these syndicates, the SIU also uncovered other syndicates which have looted millions at the hospital.
Mothibi said the SIU’s evidence has revealed that the total value of corrupt payments linked to officials and employees of GDOH and Tembisa Hospital is R122 228 000.
“The SIU has 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 Tembisa 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,” he said.
The SIU has prepared 116 disciplinary referrals against 13 officials, of which 108 were delivered to the GDOH relating to maladministration, as well as the irregular appointment of service providers at the hospital.
Health Minister, Dr Aaron Motsoaledi, said the corruption could not have taken place if it was not for the assistance of corrupt officials both at the hospital and Gauteng Health Department.
He said while investigations are continuing, there was a need to look at the officials at the department. “Whistle blowers must be protected and those involved in corruption must be removed from society,” he said. – SAnews.gov.za
