The National Prosecuting Authority’s Asset Forfeiture Unit has secured a forfeiture order for assets worth R326 million belonging to alleged members of a syndicate implicated in the Tembisa Hospital corruption scandal.

The assets, which include high-end residential properties in affluent areas and luxury vehicles, belong to members of the Maumela syndicate, one of three groups accused of siphoning off R2 billion earmarked for healthcare improvements at the Gauteng hospital.

A Special Investigating Unit investigation conducted last year found that the syndicates allegedly stole the funds through a complex web of fraud and corruption between January 2019 and August 2022.

Justice for healthcare victims

NPA head Advocate Andy Mothibi said the Asset Forfeiture Unit is an important tool to disrupt syndicates and prevent criminals from using stolen money to fight the state.

“The pursuit of justice for the people of South Africa continues, particularly in the fight against corruption. South Africans become victims of crime and corruption when they face inadequate healthcare, under-resourced health facilities, medicine shortages and a lack of essential equipment. This is a travesty of justice,” Mothibi said.

All proceeds recovered from the forfeiture will be paid into the Criminal Asset Recovery Account and ringfenced for use by the Gauteng Department of Health.

Investigation follows whistleblower’s murder

The investigation into Tembisa Hospital was preceded by a report from Babita Deokaran, former chief director of financial accounting at the Gauteng Department of Health, who was assassinated in 2021 after exposing irregularities at the hospital’s supply chain management unit.

The Asset Forfeiture Unit’s applications were based on forensic investigations by a firm appointed to assist in probing allegations of procurement fraud and corruption at the hospital.

The Specialised Audit Services Unit of National Treasury conducted a review of Tembisa Hospital’s payment data to determine all payments made to companies identified by Deokaran as having benefited from unlawful activities.

The review confirmed Deokaran’s findings on alleged corruption and irregularities.

ALSO READ: Tembisa Hospital official and Hawks sergeant granted bail in latest corruption case

Manipulation of procurement processes

Forensic investigators established that 14 entities controlled by the Maumela syndicate irregularly and unlawfully benefited from contracts with a cumulative value of more than R400 million.

The investigation revealed manipulation of procurement processes in the award of contracts for the supply of goods and services to Tembisa Hospital, which favoured entities associated with the syndicate.

In some cases, companies said to have submitted quotes during bidding denied doing so, while in other instances cover quotes were submitted by colluding companies to ensure syndicate entities were favoured.

Analysis of fund flows showed most money received by syndicate entities was used to purchase assets, pay bribes to officials and covering bidders, and fund extravagant lifestyles.

According to the NPA, a very small percentage of the total amount received could possibly be attributed to the purchase of supplies for delivery under the contracts.

ALSO READ: Demands for swift action following SIU’s R2 billion Tembisa Hospital corruption exposé