Johannesburg – Authorities have frozen assets worth about R47 million, including high-end residential property, three Mercedes-Benz vehicles, and a Land Rover belonging to syndicate members linked to dodgy tenders at Tembisa Hospital.
“Two preservation applications and orders secured by the Asset Forfeiture Unit (AFU) of the National Prosecuting Authority (NPA) were served on members of two syndicates who are implicated in fraud and corruption at Tembisa Hospital,” Spokesperson Phindi Mjonondwane said on Thursday, 11 September 2025.
The investigation into this matter was precipitated by the damning report compiled by Chief Director: Financial Accounting at the Gauteng Department of Health, Babita Deokaran, who was gunned down on 23 August 2021.
Her report detailed suspected procurement irregularities within Tembisa Hospital’s Supply Chain Management.
Mjonondwane said the Specialised Audit Services Unit (SAS) of the National Treasury (NT) conducted a review of Tembisa 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.
The SAS also conducted a review of the Tembisa 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.
In addition, SAS aimed to identify any additional related companies involved in the unlawful activities and to review payments made to those entities.
The review covered the period between April 2016 and August 2022.
The SAS confirmed the 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 R400 million.
The SAS established that 18 entities controlled by the Mazibuko syndicate apparently irregularly and unlawfully benefited from contracts from the Tembisa Hospital with a cumulative value in excess of R300 million.
On 14 August 2025, the AFU was granted an order relating to property owned by members of the Maumelasyndicate.
The property, valued at approximately R326 million, includes high-end residential property in affluent areas and luxury vehicles such as four Lamborghinis, a Bentley, and a boat.
On 27 August 2025, the AFU was granted an order relating to property owned by members of the Mazibuko syndicate.
The property, valued at approximately R47 million, includes high-end residential property in affluent areas and luxury vehicles such as three Mercedes-Benz valued in total at R10 million and a Land Rover valued at R2 million.
Mjonondwane explained that 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 Tembisa Hospital during the period 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,” Mjonondwane said.
“In instances companies who supposedly submitted quotes in the bidding process denied having made any such submissions in the bidding process.
“In other instances, in cahoots with the syndicates, cover quoting companies were used to submit bids that always favoured the syndicate entities in the process.”
Mjonondwane said the analysis conducted of the flow of funds indicates that most of the funds received by the syndicate entities were used to purchase assets, pay bribes to officials, and cover bidders.
Members of the syndicates used some of the ill-gotten funds for personal use and to fund their extravagant lifestyles.
“A very small percentage of the total amount received could possibly be ascribed to the purchase of supplies for delivery in terms of the contracts,” the NPA spokesperson said.
The Deputy National Director of the National Prosecuting Authority responsible for the Asset Forfeiture Unit, Advocate Ouma Rabaji-Rasethaba, said: “The fight for justice for the people of our country continues”.
Advocate Rabaji-Rasethaba pointed out that corruption impacts ordinary South Africans negatively and manifests in, among other problems, water supply disruptions, load shedding, and state hospitals with inadequate medication and food for patients.
“When there is no water, when there is no electricity, no textbooks, no medication, no hospitals, we are all suffering,” Advocate Rabaji-Rasethaba said.
Advocate Rabaji-Rasethaba also commended the NT, SIU, and AFU for their roles in finalising the investigations into the matter.
