The Special Investigating Unit (SIU) has revealed that three major syndicates siphoned off nearly R1.7 billion from the Gauteng Department of Health (DoH) and Tembisa Hospital.
Billions Lost Through Procurement Fraud
SIU head Advocate Lekgoa Mothibi confirmed the findings on Monday during a briefing with Gauteng Premier Panyaza Lesufi and Minister of Health Aaron Motsoaledi.
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The investigation uncovered over 2,207 procurement deals linked to more than 4,500 purchase orders worth R1.69 billion.
“Analysis has revealed serious maladministration and procurement fraud. Key officials from the Gauteng DoH and Tembisa Hospital benefitted from irregular payments,” said Mothibi.
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Syndicate Leaders Named
Mothibi identified Hangwani Maumela and Rudolph Mazibuko as ringleaders of two of the syndicates, while the identity of the third group’s leader remains undisclosed due to ongoing legal proceedings.
- Maumela’s network: 1,728 procurement bundles valued at R816 million, involving 41 suppliers.
- Linked to Vusimuzi ‘Cat’ Matlala, who allegedly benefitted at least R13 million.
- The SIU has already frozen R520 million in Maumela’s assets.
- Mazibuko’s syndicate: 651 procurement bundles worth R283 million.
- “Syndicate X”: irregular contracts and payments worth R596 million.
Low-Level Officials, Big Impact
According to Mothibi, the corruption was not limited to executives. At least 116 disciplinary actions have been initiated against clerks and lower-level managers.
“The phenomenon of lower-level officials causing more damage has been observed in other investigations,” he explained.
The SIU also confirmed that 15 current and former officials face allegations of corruption, money laundering, bid-rigging and collusion with irregularly appointed service providers.
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Corruption Tally Exceeds R2 Billion
Beyond the three syndicates, five additional smaller players pushed the total value of irregular gains to over R2 billion.
Mothibi stressed that the SIU will continue probing until all involved — from junior officials to syndicate leaders — are held accountable.
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