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

Government has released sweeping reforms to strengthen protection for whistleblowers, acknowledging that fear of retaliation, financial ruin and assassination has silenced those who could expose corruption.
Babita Deokaran, a senior finance official at the Gauteng Department of Health, was shot dead outside her Johannesburg home in August 2021 after exposing corruption in a R330 million personal protective equipment tender.

The Democratic Alliance (DA) in Gauteng has welcomed the release of the Special Investigating Unit’s (SIU) damning report on Tembisa Hospital corruption, which exposed three major syndicates that siphoned off more than R2 billion through fraudulent supply contracts.

The probe comes in the wake of whistleblower Babita Deokaran’s murder and underscores pressing demands for comprehensive overhaul of the Gauteng Department of Health, including enhanced safeguards for those who expose corruption and robust mechanisms to ensure official accountability.

Speaking at the briefing alongside Health Minister Aaron Motsoaledi, Gauteng Premier Panyaza Lesufi and Gauteng Health MEC Nomantu Nkomo-Ralehoko, SIU head Andy Mothibi, revealed that the probe was launched in 2022 after receiving a referral from the Office of the Premier. He said the financial scope of the corruption has expanded dramatically during the course of the investigation, with losses now estimated at approximately R2 billion.

“This staggering sum of money intended for the provincial provision of healthcare at Tembisa Hospital to take care of the most vulnerable was instead ruthlessly syphoned off through a complex web of fraud and corruption, representing an egregious betrayal of the public trust,” Mothibi said.

The interim findings have resulted in 116 disciplinary referrals and four criminal matters being sent to the National Prosecuting Authority (NPA). Most significantly, the largest syndicate has been linked to Hangwani Morgan Maumela, President Cyril Ramaphosa’s nephew by a previous marriage, who secured contracts worth R816 million.

The President however previously distanced himself from Maumela, saying “he did not know him”.

“The DA in Gauteng will closely monitor the referrals made by the SIU report,” said Dr Jack Bloom, DA Gauteng Shadow MEC for Health.

Bloom stated that the investigation also uncovered six smaller corruption networks, with three companies awarded contracts totalling R13.5 million linked to Vusimusa “Cat” Matlala, who is currently on trial for allegedly orchestrating a hit on his ex-girlfriend and faces scrutiny by the Madlanga Commission of Inquiry for alleged SAPS corruption.

In a significant development, the Asset Forfeiture Unit has identified assets worth R520 million belonging to Maumela and has secured some of them, including six properties and six luxury vehicles, among them four Lamborghinis.

Bloom praised this asset seizure but called for swift disciplinary action to be taken against implicated officials. “The Gauteng Health Department needs to take speedy disciplinary action against the 13 identified officials implicated in the 116 SIU referrals,” he said. “They should not be allowed to resign before completion of the disciplinary process, as happened with former Chief Financial Officer Lerato Madyo who was suspended with pay for two years before resigning.”

According to the SIU findings, corrupt payments to officials totalled R122 million. Bloom argued that these officials should be made liable to repay this money, including through attachment of their pension funds.

The DA has expressed disappointment that implicated companies have not yet been blacklisted and may still be benefiting from government contracts. “The important thing is that the big fish should not be allowed to get away, as these are mostly lower-level officials,” Bloom warned.

The party has reiterated its call for Premier Panyaza Lesufi to remove Gauteng Health and Wellness MEC Nomantu Nkomo-Ralehoko and Head of Department Lesiba Malotana, arguing they must be held accountable for continuing irregular spending and service delivery failures.

“The Gauteng Health Department needs new leadership to root out all corruption and provide decent healthcare,” said Bloom. “Babita Deokaran gave her life to expose this devastating corruption. In honour of her and all other whistleblowers, it is now time for action to be taken against the perpetrators.”

The case has drawn particular attention due to its connection to the highest levels of government and the substantial sums involved in what appears to be one of the largest healthcare corruption scandals in recent South African history.

The DA has called for the NPA to expedite charges against syndicate bosses and their accomplices, warning that delays could allow key figures to escape justice.

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