The Special Investigating Unit (SIU) has revealed in its probe into Tembisa Hospital, that three coordinated syndicates are responsible for the looting of over R2-billion from the hospital coffers.

The SIU released its interim investigation report on Tembisa Hospital on Monday, with the expected completion of the investigation by November 2027.

SIU spokesperson Kaizer Kganyago pointed to a complex investigation that required further investigation.

“As complex as it is, we have been able to uncover irregularities, fraudulent activities and corrupt activities by officials and service providers,” he said.

The three syndicates implicated in the coordinated looting of hospital funds include the Maumela Syndicate, which is linked to Hangwani Morgan Maumela, who is the nephew of President Cyril Ramaphosa, through a previous marriage.

The SIU is reviewing 1 728 bundles worth R816 560 710 related to the Maumela syndicate and has completed 924 analyses, uncovering significant irregularities.

Kganyago pointed out that the SIU had traced 41 suppliers or service providers linked to Maumela. Meanwhile, three of the companies that were awarded contracts to the value of R13 538 292 in this syndicate are linked to controversial businessman Vusimuzi ‘Cat’ Matlala.

Kganyago also revealed the involvement of the Mazibuko Syndicate, which is linked to tender kingpin Rudolph Mazibuko.

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.

The SIU is currently assessing 1 237 procurement bundles, valued at R596 424 356, linked to Syndicate X.

An analysis of 646 bundles has revealed numerous procurement irregularities, and the identification of secondary conduit accounts used to launder funds connected to Tembisa Hospital, with assets tied to this syndicate valued at approximately R150 000 000.

Kganyago noted that 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”.

“As complex as [the investigation] is, we have been able to uncover irregularities, fraudulent activities and corrupt activities by officials and service providers,” he said.

The SIU has worked closely with the Office of the Gauteng Premier in the Tembisa Hospital investigation, after the Office referred matters to the SIU to be investigated in September 2022.

“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,” Kganyago said.

The investigation currently involves 207 service providers which traded with the Tembisa Hospital under 4 501 purchase orders (PO).

He said each PO was linked to a purported three-quote procurement process purportedly involving three competing bidders.

Kganyago highlighted that the total value of matters under investigation by the SIU in terms of the Proclamation was R2 043 293 404.10.

“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,” he explained.

Kganyago highlighted that the SIU’s evidence had revealed that the total value of corrupt payments linked to officials and employees of GDOH and Tembisa Hospital was R122 228 000.

He said the SIU had 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. 

To date, 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 Tembisa Hospital.

One matter was held back for the preparation of civil litigation, and seven additional referrals were finalised in preparation for handover to the GDOH, he said.