The Special Investigating Unit (SIU) has revealed extensive corruption at the Tembisa Provincial Tertiary Hospital in Gauteng, exposing how syndicates colluded with health officials to siphon off more than R2 billion meant for healthcare services.
The findings, contained in an interim report released on Monday, follow a probe into allegations of maladministration and fraud at the hospital.
The briefing was led by SIU head Advocate Andy Mothibi, joined by Health Minister Dr Aaron Motsoaledi, Gauteng Premier Panyaza Lesufi, and provincial Health MEC Nomantu Nkomo-Ralehoko.
According to the SIU, at least three syndicates operated within the hospital’s supply chain, manipulating procurement systems and bypassing safeguards designed to ensure transparency.
Standard processes such as purchase request forms, vendor vetting, and compliance checks were routinely ignored. Instead, fraudulent documentation was submitted, while supplier identities were concealed to mask irregularities.
Investigators also found that the corruption extended beyond successful bidders. Unsuccessful companies were allegedly roped into the scheme, knowingly submitting quotations despite having no chance of winning contracts.
In return, they received payments from syndicate-linked service providers through money transfers, shared directorships, and family connections. At least R1 million in such kickbacks was traced by the SIU.
The report further implicates the hospital’s leadership. The former CEO is said to have authorised the appointment of non-compliant bidders, while procurement officials repeatedly requested purchase orders for irregular suppliers without triggering concern from the Gauteng Health Department’s head office. Compliance certificates were also issued to non-compliant companies without scrutiny.
Mothibi described the scheme as a “devastating plunder” of public resources, pointing out that the stolen funds were intended to provide healthcare for vulnerable communities.
The investigation, which began in 2022, initially suggested losses of around R850 million, but evidence now shows the amount exceeded R2 billion.
The SIU’s work highlights what it calls severe breaches of trust and systemic collusion within the hospital and the provincial health department.
The probe is ongoing, with further action expected against implicated individuals and entities.
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