Two preservation orders secured by the Asset Forfeiture Unit (AFU) last month were served on members of two syndicates who are implicated in fraud and corruption at Tembisa hospital, the National Prosecuting Authority (NPA) said on Thursday.
The NPA said the investigation was precipitated by the receipt of a report from the late Babita Deokaran, who was chief director: financial accounting at the Gauteng health department. She was assassinated on August 23 2021.
Deokaran’s report detailed suspected procurement irregularities in the hospital’s supply chain management.
NPA spokesperson Phindi Mjonondwane said the Specialised Audit Services (SAS) unit of the National Treasury conducted a review of the hospital’s basic accounting system payment data to determine all payments made to the companies that were identified by Deokaran as having benefited from the unlawful activities.
It also conducted a review of the hospital’s central supplier database and the Companies and Intellectual Property Commission records of the implicated companies to verify the registration and directorships of the companies, to identify any additional related companies involved in the unlawful activities and to review payments made to those companies. The review covered the period April 2016 to August 2022.
The review by the SAS confirmed the possible large-scale corruption reported by Deokaran.
“The SAS established that 14 entities controlled by the Maumela syndicate apparently irregularly and unlawfully benefited from contracts from the Tembisa hospital with a cumulative value in excess of R400m.”
The SAS established that 18 entities controlled by the Mazibuko syndicate apparently irregularly and unlawfully benefited from contracts from the hospital with a cumulative value in excess of R300m.
On August 14, the AFU was granted an order relating to property owned by members of the Maumela syndicate.
“The property, valued at about R326m, includes high-end residential property in affluent areas and luxury vehicles such as four Lamborghinis, a Bentley and a boat.”
On August 27, the AFU was granted an order relating to property owned by members of the Mazibuko syndicate.
“The property, valued at R47m, includes high-end residential property in affluent areas and luxury vehicles such as three Mercedes-Benz cars valued at R10m and a Land Rover valued at R2m,” Mjonondwane said.
Mjonondwane said the applications by the AFU were premised on forensic investigations by firms appointed to assist in the investigation concerning allegations of procurement fraud and corruption that took place at the hospital from January 2019 to August 2022.
“Forensic investigations revealed a multitude of irregularities in the procurement processes with a manipulation of the processes in the award of contracts for the supply of goods and/or services to Tembisa hospital which favoured entities associated with the syndicates.”
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