The Special Investigating Unit (SIU) has uncovered a sprawling web of corruption at Tembisa Hospital, implicating rogue officials from both the Gauteng health department and the hospital itself, turning what was once a civil lifeline into a small state economy captured by mafias.
The SIU’s interim report lays out a co-ordinated scheme in which at least three principal syndicates and several smaller groups systemically looted procurement budgets, converting purchase orders and service contracts into steady revenue streams for private intermediaries and pliant officials.
What began as suspicious procurement worth roughly R850m, flagged by assassinated whistleblower Babita Deokaran, has mushroomed into losses now estimated at around R2bn and a scandal that exposes the mockery of President Cyril Ramaphosa’s pledge to crack down on the corruption cancer corroding almost every layer of government.
For their troubles, the employees “who turned a blind eye and allowed the public money to be looted” were handsomely rewarded, pocketing a collective R122m, SIU head Andy Mothibi said on Monday, adding that about R30m was paid to one official alone.
“This staggering amount of money, to take care of the most vulnerable, was ruthlessly syphoned off through a complex web of fraud and corruption,” said Mothibi, referring to the R2bn headline figure that surpasses the original amount flagged by Deokaran.
The SIU names the Maumela syndicate — linked to the politically connected Hangwani Maumela — as the largest beneficiary, securing about R816m in tenders and linked to dozens of front companies.
Luxury properties in Hartbeespoort, Sandton, Zimbali and Cape Town; high-end vehicles, including Lamborghinis and a Bentley Continental; and even leisure assets, such as a boat, have been traced to that network and frozen by the SIU’s investigators.
“The SIU traced 41 service providers linked to this syndicate. Three of the companies awarded contracts are linked to Vusimuzi Matlala,” Mothibi said.
Matlala was arrested in Midrand in May and faces charges of attempted murder, conspiracy and money laundering. The police subsequently linked three firearms seized from Matlala to 18 murder and attempted murder cases, including DJs and businesspeople. He has been in custody since.
The Mazibuko syndicate, linked to a Rudolph Mazibuko, secured R283m worth of tenders and had properties in Gauteng and the Western Cape, and an as-yet-unnamed “Syndicate X” received R596m.
“Smaller rings captured more than R162m. The investigations are ongoing,” said Mothibi, adding that key officials from the provincial health department and Tembisa hospital employees “benefited from corrupt payments” by service providers.
The investigation identified at least 207 service providers who traded with Tembisa Hospital and has so far referred 108 matters to the provincial health department for administrative and disciplinary action. The SIU has also compiled evidence that R122m in corrupt payments flowed to officials.
“The SIU identified 15 current and former officials who were involved in bid rigging, money laundering and corruption. These individuals abused their positions to benefit from these service providers and enrich themselves. The number of those implicated is expected to rise," Mothibi said.
Aside from Matlala, the SIU is pursuing parallel remedies through the Special Tribunal while preparing referrals to the National Prosecuting Authority for criminal prosecution and to Sars where tax non-compliance is suspected.
Mothibi said the investigation would be completed earlier than November 2027.
Government reactions could be seen as performative. Gauteng Premier Panyaza Lesufi called the report “damning and disturbing” and backed an expansion of the SIU’s remit to other provincial hospitals.
“The question I’m struggling with is, why Tembisa Hospital? Why was it selected by so many syndicates? When things like this happen, you start appreciating why the Chinese execute people to remove them [permanently] from society,” said health minister Dr Aaron Motsoaledi.
Update: 29 September 2025: This story has been updated with more information
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