Johannesburg – The Public Servants Association (PSA) says it is outraged because none of the 207 companies implicated in the R2 billion looting at Tembisa Hospital in Gauteng have been blacklisted.
The Special Investigating Unit (SIU) has already made adverse findings regarding these companies’ involvement in the looting.
“This failure represents a shocking lapse in accountability and governance that continues to erode public trust in government’s ability to safeguard taxpayer funds,” the PSA said on Tuesday, 18 November 2025.
The SIU’s interim report exposed a network of corruption and fraud involving over 4 500 irregular purchase orders, facilitated by fly-by-night companies, many registered just days before receiving multimillion-rand tenders.
These companies siphoned billions of rand meant for critical healthcare services, whilst hospitals struggled with shortages and patients suffered.
These companies, however, remain free to conduct business with government departments, perpetuating a cycle of corruption and impunity.
The PSA said it finds it unacceptable that bureaucratic loopholes and finger-pointing between the Department of Health and National Treasury have allowed this scandal to drag on without decisive action.
The union said that while the Minister of Health insists that only the Treasury can blacklist suppliers, “this excuse does not protect public funds or prevent repeat offenders from further looting state coffers”.
This failure is not just administrative – it is a betrayal of public servants and citizens who rely on a functioning healthcare system.
The murder of whistleblower Babita Deokaran, who courageously flagged suspicious payments at the Tembisa Hospital, underscores the deadly consequences of corruption and the urgent need for systemic reform.
Deokaran was assassinated on 23 August 2021.
The PSA demanded the immediate blacklisting of all companies identified by the SIU and criminal prosecution of all persons and officials implicated in the looting.
The PSA stated that urgent procurement reforms were necessary, including the insourcing of non-specialised services, to curb outsourcing abuse.
